The Director-General of the World Trade Organisation, Ngozi Okonjo-Iweala, has said that Nigeria must shift its focus from stabilisation to growth of its economy.

Okonjo-Iweala spoke on Tuesday while addressing criticism of the WTO’s trade system by the United States during an interview with Arise TV on the sidelines of the Future Investment Initiative in Riyadh, Saudi Arabia.

The DG acknowledged the validity of criticisms leveled against the global body, particularly by the United States, regarding its operational rigidity. She said the complexity of the WTO’s structure, which includes 166 members utilizing a consensus-based decision-making system, has led to issues with the speed of enacting new rules and agreements.

She elaborated on the challenge: “Well, one of them is, this is specifically of the WTO, and I share it. The US feels the WTO is not flexible enough. It’s too inflexible. You can’t get decisions made quickly because, you know, it’s a consensus decision-making system with 166 members.”

She noted the dual nature of consensus: “Consensus is good because it gives the smallest member the same power as the largest.” However, she cautioned: “But when it becomes unanimity, it becomes a veto power, and we need to find a way to make the consensus more workable.” She proposed a solution for faster agreements: “That way, willing coalitions of members can come together to make new agreements, new rules. So, I share that criticism. We need to reform that system.”

Beyond institutional reform, Okonjo-Iweala highlighted a major systemic flaw, noting that the world has become dangerously “over-dependent” in trade, a system initially built only for interdependence. She pointed out that many countries rely too heavily on the US for market demand and on China for critical supplies.

To mitigate this risk, the DG urged countries to look toward diversification into new markets. Okonjo-Iweala concluded by strongly pitching Africa as the ideal solution to this global over-dependence, stressing that the continent is ready to fill the vacuum with its wealth of rare earths and critical minerals.

The director-general added that this opportunity is timely, given the continent’s current population of 1.4 billion people and the projection that one in five of the working-age population will be African by 2050.

‘WTO EXPERIENCED ITS GREATEST DISRUPTION IN HISTORY’

The former finance minister of Nigeria said WTO’s multilateral system has demonstrated surprising resilience in the face of the greatest disruption it has experienced in its eight-decade history.

Okonjo-Iweala said the resilience was confirmed by an analysis using a specific methodology that tracks how much world trade occurs on WTO terms, noting that prior to the imposition of tariffs, the figure stood at 80 per cent, not the expected 100 per cent.

She explained that after the introduction of tariffs, the figure dropped to 72 per cent, confirming that the tariffs have had a definite impact.

However, Okonjo-Iweala concluded that the WTO system was built “block by block over 80 years” and is therefore “not that easy to dismantle.”

She offered a positive update on trade forecasts, saying: “The second thing is that our forecast for world trade this year is quite a bit higher than we had originally said.”

She detailed the improvements: “In August, after we put in the August tariffs, we were forecasting 0.9 per cent, which is low compared to 2.7 per cent pre-tariffs. But now after the first half of the year, numbers are in, we’re actually forecasting 2.4 per cent. So that’s much better.”

She attributed the improved figures to two factors: “Why is that? A lot of businesses in the US stockpiled goods to get ahead of the tariffs. Then we also saw big trade in AI goods. 42 percent of the growth in trade in the first half of the year is driven by AI trade.”

Speaking on subsidies, Okonjo-Iweala defined a good subsidy as one that makes economic sense, such as supporting research, innovation, and young entrepreneurs in tech and startups, which she described as exciting areas for new discovery.

Also, she warned against wasteful subsidies, such as those provided to inefficient state enterprises, and advocated for green subsidies to combat climate change. On Monday, the DG said the organization is often taken for granted despite playing a vital role in global trade.

‘NIGERIA’S STABILISATION EFFORTS MATERIALISING; GOVERNMENT MUST NOW PRIORITISE GROWTH’

Okonjo-Iweala asserted that the primary requirement for Nigeria’s economic take-off—stable exchange rates and a predictable fiscal regime—is now beginning to materialize.

Drawing from her experience, she stressed that once this foundational stabilization is achieved, the government must immediately shift its focus and attention toward implementing policies designed to drive economic growth.

She outlined the necessary shift: “The government now needs to look at growth, because the only way that people can feel that the economy is working for them is when it grows, and not only just growing, but the seeds and fruits of that growth is spreading to those who don’t have.”

She offered encouragement, saying: “Those at the bottom or end of the ladder, those who are working, can feel the impact. I think we’ll get there if the right policies are put in place.”

She directly advised the Nigerian government: “What I was telling the government at the time was, please, it is time now for you to put in place those policies that can make the economy grow.”

She identified key areas for growth: “What does that mean? Small and medium enterprises in the economy. We know Nigerians are so entrepreneurial.”

She further explained the minimal requirements for local entrepreneurs: “They don’t even look for much from government. How do we support small and medium enterprises? Let’s support the Bank of Industry so that it can, you know, support a lot of small and medium entrepreneurs.”

She also highlighted agriculture: “What are we doing about agriculture? We are blessed with many fertile lands. If we want, we can feed ourselves. We don’t even need to import food.”

Okonjo-Iweala urged the government to shift focus to growth initiatives by targeting rural areas and supporting women and youth entrepreneurs with innovative business ideas. She highlighted that growth opportunities exist not only in agriculture but also in sectors like the creative industries, expressing pride in its potential after noting it previously contributed 1 per cent to GDP. The DG noted that the country is still too dependent on oil and gas, and there is a need to diversify.