Boosting Trade Facilitation: CGC Launches "Green Channel" at Lagos Free Zone

Lod Onyeji

The Nigerian Comptroller General of Customs, Dr. Bashir Adewale Adeniyi, has commissioned the Lagos Free Zone's "Green Channel," a customs-approved logistics corridor designed to fast-track cargo movement and enhance trade facilitation. The initiative is expected to reduce cargo clearance time, lower logistics costs, and increase revenue generation.

Empirical evidence from advanced countries suggests that similar projects have significantly boosted trade facilitation and economic growth. For instance, Singapore's Free Trade Zones have contributed to the country's status as a global trade hub, with the Port of Singapore handling over 37 million TEUs (twenty-foot equivalent units) of cargo in 2020 alone ( Maritime and Port Authority of Singapore, 2021). Similarly, the Dubai Free Zone in the UAE has attracted over 1,500 international companies, generating over $100 billion in trade value in 2020 (Dubai Free Zones, 2021).

The Green Channel at Lagos Free Zone is designed to provide a secure, customs-controlled route for cargo movement between Lekki Deep Seaport and the Free Zone. The initiative offers several benefits, including faster time-to-market, lower logistics costs, predictable supply chains, and enhanced competitiveness.

"The Green Channel provides Lagos Free Zone-based companies with a decisive operational advantage by enabling cargo to move seamlessly from vessel to factory or warehouse through a secure customs-controlled route," said Adesuwa Ladoja, Managing Director/CEO of Lagos Free Zone.

The Nigerian government expects the Green Channel to support the country's trade facilitation objectives, enhance regional competitiveness, and strengthen Nigeria's role as a West African trade and production hub.

*Key Benefits of the Green Channel:*

- Reduced cargo clearance time from 24-48 hours to a matter of hours

- Lower logistics and demurrage costs

- Predictable supply chain

- Enhanced competitiveness for manufacturers and exporters

- Regulatory certainty with full customs oversight.

The commissioning of the Green Channel is a significant step towards boosting Nigeria's trade facilitation and economic growth, and it is expected to have a positive impact on the country's economy.