The Director-General of the World Trade Organisation, Ngozi Okonjo-Iweala, has warned that declining trust among nations is undermining global trade, investment and economic growth.
Speaking during a fireside chat at the 20th anniversary celebration of commercial law firm Streamsowers & Köhn in Lagos on Thursday, Okonjo-Iweala said increasing suspicion between countries had created uncertainty that was affecting businesses and the global economy.
She noted that nations that once worked closely together were now becoming more cautious of one another, a development she said was weakening international cooperation and reducing economic opportunities.
Despite the current challenges, the WTO chief expressed confidence that countries would eventually rebuild trust because many of today’s global problems require collective action.
According to her, issues such as climate change, public health emergencies and water security cannot be effectively addressed by any nation acting alone.
Okonjo-Iweala observed that the international system had shifted from one driven largely by cooperation to one increasingly shaped by competition among countries. However, she stressed that global trade had remained resilient despite geopolitical tensions.
She disclosed that about 72 per cent of global trade continues to be conducted under WTO rules, adding that several countries, including Australia, Singapore, New Zealand and the United Kingdom, still see value in the multilateral trading system.
The former Nigerian finance minister also recalled the WTO’s role during trade disputes between the United States and China, warning that prolonged retaliatory measures could deepen divisions in global commerce and place smaller economies under pressure to align with competing powers.
Turning to Africa, Okonjo-Iweala said the continent had significant opportunities in critical minerals and renewable energy but cautioned that weak political coordination could prevent African countries from fully benefiting from them.
She urged African governments to negotiate collectively through regional and continental institutions to strengthen their bargaining position in international trade discussions.
On artificial intelligence, she described the technology as a tool with enormous potential but said its impact would depend largely on how governments regulate and manage its development.
The WTO chief also identified effective leadership, good governance and strong institutions as essential for Africa’s economic progress, arguing that institutional weaknesses continue to hold back the continent’s development.
Reflecting on her career, Okonjo-Iweala said listening to others, remaining humble and embracing different perspectives had been key to her leadership journey.
Also speaking at the event, former Executive Secretary of the Nigerian Investment Promotion Commission, Yewande Sadiku, said Nigeria’s banking consolidation and debt relief reforms of the mid-2000s helped strengthen the country’s financial system and improve investor confidence.
She added that recent improvements in Nigeria’s sovereign credit ratings and renewed recognition as a frontier market suggest that investor confidence in the country is gradually improving.
