Ngozi Okonjo-Iweala, Director-General of the World Trade Organisation (WTO), has warned that the growing erosion of trust among nations is one of the most significant threats to global trade, investment, and economic stability. Speaking during a fireside conversation at the 20th anniversary event of commercial law firm Streamsowers & Köhn in Lagos on Thursday, she highlighted how rising mistrust is creating uncertainty that undermines businesses worldwide. The former Nigerian Minister of Finance emphasized that countries once seen as reliable partners are now increasingly questioning each other’s intentions, leading to conflict, missed opportunities, and a fragmented global economy.
Okonjo-Iweala expressed cautious optimism, asserting that global cooperation must prevail because no single nation, regardless of its power or influence, can address today’s complex challenges alone. She pointed out that issues like climate change, disease outbreaks, and water security require collective action and cannot be solved in isolation. “The single biggest issue—the trust of countries in the world in each other has deteriorated,” she said, adding that actions by once-trusted nations have eroded confidence and created instability. “Mistrust leads to uncertainty, which is very bad for business. I think we can recover because we don’t have a choice.”
She noted a shift from cooperative multilateralism to a more competitive international order where countries view each other as rivals rather than partners. Despite this, global trade has shown resilience, with approximately 72 per cent of world trade still operating under WTO rules. “In spite of all these disruptions, global trade has been very resilient,” she remarked, surprising many with the statistic. Countries such as Australia, Singapore, New Zealand, and the United Kingdom continue to support multilateral trading systems because they offer long-term benefits over prolonged trade disputes.
Okonjo-Iweala recalled the WTO’s role during the trade tensions between the United States and China, cautioning that retaliatory measures could further fragment global commerce and force weaker economies into aligning with competing powers. Turning to Africa, she described the continent as standing at a defining moment in its economic history but warned that lack of political coordination could prevent African nations from capitalizing on opportunities in critical minerals and renewable energy. “The opportunities for Africa excite me, but I am also dreading that we will miss those opportunities,” she stated.
She urged African countries to negotiate collectively through regional and continental blocs to strengthen their bargaining power. On artificial intelligence, she called it both an opportunity and a potential source of disruption, stressing that effective governance will determine whether it drives inclusive development. Leadership, governance, and strong institutions were identified as key to Africa’s progress, with Okonjo-Iweala recommending the book Why Nations Fail to young Africans. “The failure of institutions and the failure of governance and leadership on our continent is what is holding us back. We have what it takes, but we somehow don’t get it right,” she said.
Reflecting on her own leadership journey, she highlighted listening, humility, competence, and openness to others’ views as essential qualities. Also speaking at the event, Yewande Sadiku, senior investment banker and former Executive Secretary of the Nigerian Investment Promotion Commission, noted that Nigeria’s banking consolidation and debt relief reforms in the mid-2000s laid the foundation for stronger financial stability. She added that recent improvements in Nigeria’s sovereign ratings and renewed frontier market recognition show investor confidence is gradually returning. As global dynamics evolve, the need for trust, cooperation, and strong institutions remains central to sustainable economic growth.
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