Customs unveils Lagos Free Zone green channel to reduce trade costs

Ololade Adenika
3 Min Read

The Nigeria Customs Service has introduced a green channel system at the Lagos Free Zone, a reform aimed at accelerating cargo clearance and lowering transaction costs for businesses operating within the corridor.

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Faster processing for compliant traders

Comptroller-General Bashir Adeniyi stated that the green channel will prioritise importers and exporters with strong compliance records. Under the system, qualifying shipments will undergo minimal physical inspection, allowing for faster documentation processing and release.

Customs noted that the initiative forms part of broader port modernisation efforts focused on automation, risk management and transparency. The agency explained that reducing clearance delays will help businesses avoid demurrage charges and excessive storage costs.

Trade experts have long identified port congestion and administrative bottlenecks as key drivers of high operating expenses for Nigerian manufacturers and traders.

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Strengthening port competitiveness

Nigeria’s port system has faced persistent criticism over inefficiencies that increase logistics expenses and slow supply chains. The green channel is expected to improve turnaround times, enhance predictability and boost investor confidence.

Customs said the reform aligns with efforts to improve Nigeria’s ranking on global ease of doing business indicators. By streamlining procedures, authorities aim to position the Lagos Free Zone as a more competitive hub for regional trade and industrial activity.

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Impact on SMEs and manufacturers

Small and medium enterprises that depend on imported raw materials or export finished goods stand to benefit from faster cargo processing. Reduced delays can improve inventory turnover and cash flow management, which are critical for business stability.

Industry stakeholders argue that sustained policy consistency and digital integration will determine the long-term success of the reform. Customs added that compliance, transparency and technology adoption will remain central to maintaining efficiency within the system.

The green channel initiative signals a broader commitment to reducing structural trade bottlenecks and supporting Nigeria’s industrial expansion.

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