Widespread distrust worldwide is stifling commerce and international exchange, according to Okonjo-Iweala

The Director-General of the World Trade Organisation, Ngozi Okonjo-Iweala, has identified the growing erosion of trust among nations as a significant threat to global trade, investment, and economic stability, citing the rising mistrust as a major obstacle to business growth worldwide.

n

Okonjo-Iweala made these remarks during a fireside conversation at the 20th anniversary of commercial law firm Streamsowers & Köhn in Lagos on Thursday, as stated in a statement released on Friday.

n

According to Okonjo-Iweala, the increasing distrust among countries is leading to conflict, missed opportunities, and a fragmented global economy, as nations that once regarded each other as reliable partners now question each other's intentions.

n

Despite this, the former Nigerian Minister of Finance expressed optimism that global cooperation would ultimately prevail, noting that no country can tackle today's complex global challenges alone, regardless of its influence.

n

Okonjo-Iweala stated that the single biggest issue is the deterioration of trust among countries, which is not good for the world, as mistrust leads to uncertainty that is detrimental to business, but she believes that recovery is possible because there is no alternative.

n

The world has shifted from "cooperative multilateralism" to a more competitive international order, where countries see each other as rivals rather than partners, according to Okonjo-Iweala, who noted that issues like climate change, disease outbreaks, and water security require collective action.

n

Despite growing geopolitical tensions, Okonjo-Iweala said that global trade has remained resilient, with about 72 per cent of world trade still operating under WTO rules, a fact that often surprises people.

n

Many countries, including Australia, Singapore, New Zealand, and the United Kingdom, continue to embrace multilateral trading rules because they provide greater long-term benefits than prolonged trade disputes, Okonjo-Iweala explained.

n

The WTO chief recalled the organisation's intervention during trade tensions between the United States and China, warning that retaliatory trade measures could further fragment global commerce and force weaker economies to align with competing global powers.

n

Regarding Africa, Okonjo-Iweala said that the continent stands at a defining moment in its economic history, but a lack of political coordination could prevent African countries from fully exploiting opportunities in critical minerals and renewable energy.

n

She urged African countries to negotiate collectively through regional and continental blocs rather than individually, which would strengthen the continent's bargaining power, and expressed both excitement and concern about the opportunities and challenges facing Africa.

n

Okonjo-Iweala described artificial intelligence as both an opportunity and a potential source of disruption, stressing that effective governance would determine whether it drives inclusive development, and identified leadership, governance, and strong institutions as critical to Africa's development.

n

She recommended the book "Why Nations Fail" to young Africans, saying that the failure of institutions, governance, and leadership on the continent is what is holding it back, despite having the necessary resources and potential.

n

Reflecting on her leadership journey, Okonjo-Iweala said that listening is one of the most important qualities of an effective leader, and that humility, competence, and openness to others' views have helped her overcome resistance throughout her career.

n

The fireside conversation was part of the activities marking the 20th anniversary of Streamsowers & Köhn, which also featured a speech by senior investment banker and former Executive Secretary of the Nigerian Investment Promotion Commission, Yewande Sadiku.

n

Sadiku said that Nigeria's banking consolidation and debt relief reforms of the mid-2000s laid the foundation for stronger financial stability and improved investor confidence, despite being difficult to implement.

n

She added that recent improvements in Nigeria's sovereign ratings and renewed frontier market recognition indicate that the country is gradually rebuilding investor confidence, a positive development for its economy.