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Okonjo-Iweala’s Reappointment As WTO DG: Gains For Nigeria, African Region

Dr (Mrs) Ngozi OkonjoIweala’s reappointment was unopposed by all 166 members of the World Trade Organisation (WTO), for a second four-year tenure, experts said Nigeria and the African region stand the chance to reap from an improved trade policy that could enhance their trade system, ABDULWAHAB ISA reports

 

Nigeria’s two-time former Minister of Finance and the current Director-General of the World Trade Organisation (WTO), Dr (Mrs) Ngozi Okonjo-Iweala, shone brightly recently with excellent service delivery on the global stage.

The entire 166 members of the WTO, by broader consensus, reappointed her as Director-General for a second term of four years back-to-back.

She had been similarly appointed to the same position on March 1, 2021, thus making her the first woman and first African to lead the WTO. Her first term tenure will end on August 31, 2025.

Unarguably, her reappointment underscores strong support for her efforts to enhance the WTO’s relevance and capacity in addressing the evolving challenges of global trade.

The process for her reappointment was devoid of the usual intrigues and underhand play that usually characterised high-stakes global offices.

Her reappointment was flawlessly initiated on October 8, 2024, overseen by Ambassador Petter Ølberg of Norway, Chair of the General Council.

With no additional nominations submitted by the November 8, 2024 deadline, Okonjo-Iweala stood as the sole candidate.

The process was conducted in a fully open and transparent manner, adhering to the WTO’s procedures for the appointment of Directors-General.

First tenure intrigues, scorecard

Before she vied for the WTO plum position in 2021, the former World Bank Managing Director headed the board chair of Gavi, a global alliance for ensuring low-income countries can access life-saving vaccines.

By the time Okonjo-Iweala threw her hat in the ring for the WTO DG job, which she declared way back in 2000, her intention met subtle resistance from powerful nations like the United States of America, which at the time had Donald Trump as her President.

Despite overwhelming backing for her candidacy received from the WTO’s 164 members, the US was adamant, ready to block her appointment. She was backed by countries in the Caribbean, Africa, European Union, China, Japan, and Australia.

Unconfirmed sources at that time attributed the US’s seeming blockage of her appointment to the way the WTO had operated for some time. Objecting to China’s designation as a developing country and blocking the appointment of new judges to the organisation’s appeals body.

What played in favour of Okonjo-Iweala was the WTO’s long-standing tradition, which stipulates that the WTO chooses its Director General by consensus, with all 164 members having to approve a candidate.

She came on board during a period the world was wrestling with the COVID-19 pandemic. A delicate period, the world navigated through the polycrisis-climate change, pandemic, the war in Ukraine, economic slowdown, inflation, food insecurity, monetary tightening, and debt distress.

First woman, and first from the Africa region to occupy the position, Okonjo-Iweala was well equipped from an array of previous top jobs experiences to deliver on her current job as WTO DG.

Among her memorable achievements during her first tenure was the conclusion of a historic agreement on fisheries subsidies after 22 years of no movement; the first multi-lateral agreement since the Trade Facilitation Agreement (TFA) in 2013 (and Export Subsidies in 2015).

She was able to secure members’ nod for the extended E-Commerce Moratorium, approve the TRIPS waiver with a strong Trade and Health Ministerial Declaration, and give a strong mandate for the reform of the dispute settlement system by 2024.

“The Trade World was taken by surprise to see the WTO deliver, and one news outlet termed MC12 the Miracle on Lake Geneva,” she said. In one of her exclusive interviews with Africa Policy Journal, she called on African nations to develop regulations to promote digital trade and e-commerce on the continent.

She praised the efforts of young people who are engaging in digital trade and stressed the importance of creating a level playing field to support their efforts.

Okonjo-Iweala champions the importance of gender empowerment in promoting inclusion in international trade.

She pointed out that women involved in international trade earn twice as much as those who are not involved in similar ventures.

In addition, the Director-General called on African countries to address the challenges of infrastructure and border crossing and to engage in manufacturing to make the African Continental Free Trade Area (AfCFTA) more effective.

According to her, despite serving around 1.4 billion people, trade between African countries accounts for only 15%, while the trade volume with the rest of the world is only 3%. She urged the continent to work harder to address this challenge.

As the arrowhead of the WTO, Okonjo-Iweala, on several occasions has advised Nigeria, her home country, on steps to take to achieve seamless trade facilitation.

Recently at the Nigeria Customs Service Comptroller General conference, which was held last month in Abuja, she advised the Nigerian government to work on streamlining the number of agencies at the border for efficient trade facilitation. She added that the WTO was on the verge of reviewing Nigeria’s trade policy for an improved trade system.

In a keynote address delivered virtually, WTO DG said for Nigeria to achieve ambitious growth targets for 2050, it will have to shift gears and start comparing herself with global leaders in facilitating trade and try to match their performance.

She advised customs on potential areas for future reform for customs service. Stating, “The first is risk management.

In many developed economies, the share of consignments elected for physical inspection is lower than 1%, while in Nigeria it is around 90%, with an additional 9% of consignments scanned.

Without improving risk management and reducing inspection rates, accordingly, speeding up port and border clearance in a meaningful manner would be impossible.

“Of course, better risk management will have to go hand in hand with better compliance by firms, improved targeting and feedback from inspections, and less discretion on the part of individual officials to ensure customs’ own rules and regulations are predictably and consistently applied, all coupled with effective sanctions.

Better risk management, information sharing among agencies, and faster clearance would all contribute to reducing delays. “The second area for reform is predictability.

The predictability of tariffs and other border measures remains limited, as fiscal policy measures often adjust tariffs, and tariffs remain subject to a multitude of discretionary exemptions,” former Nigeria’s finance minister admonished.

She suggested better coordination and delegation at borders. “Compared to other economies, Nigeria has an unusually large number of government agencies present at borders.

Efforts to foster coordination and ensure joint inspections seem to have only been partially successful. “Yes, there has been an effort to try, but we need to do much more.

Would there be room to undertake a new attempt to limit the number of agencies present at the border? With the task delegated to lead border agencies.

Delegation of this kind has been an important element globally in facilitating trade. “Of course, this would require much clearer codification of trade-related requirements by all agencies, aided by significant simplification of such requirements, focusing on issues related to health, safety, and environmental protection.”

She further advised that Nigerian agencies need to work with the Customs Service to streamline their approach to handling the border, as noted; “I understand you are currently undertaking a new time-release study, transparently publishing its results, which show the public how things are improving and could help the NCS engage traditional and new stakeholders in identifying where the next round of reforms would have the greatest impact.”

The WTO members, she said, will be reviewing Nigeria’s trade policies, a document that provides valuable insights on Nigeria’s trade policy environment and how it could be improved.

Endorsement

Pleased with her sterling performances, including the seamless approach she brings to bear in administering the global trade body, the General Council of the World Trade Organisation (WTO) agreed on November 29 by consensus to re-appoint Okonjo-Iweala as Director-General for a second four-year term.

The second term of four years will begin on September 1, 2025. In ratifying the decision, the WTO Council said, “The decision reflects broad recognition of her exceptional leadership and strategic vision for the future of the WTO.”

Her re-appointment process, initiated on October 8, 2024, was overseen by Ambassador Petter Ølberg of Norway, Chair of the General Council.

With no additional nominations submitted by the November 8 deadline, Okonjo-Iweala stood as the sole candidate. The process was conducted in a fully open and transparent manner, adhering to the WTO’s procedures for the appointment of Directors-General.

Ambassador Ølberg lauded her achievements, stating, “The General Council commends Dr Ngozi OkonjoIweala for her outstanding leadership during her first term.

Amid significant global economic challenges, she strengthened the WTO’s ability to support its members and set a forward-looking agenda for the organisation.

Her leadership was instrumental in securing meaningful outcomes at pivotal moments, including the 12th and 13th Ministerial Conferences (MC12 and MC13), where major milestones were achieved.

“As we look ahead, the Council fully supports Dr Okonjo-Iweala’s commitment to ensuring that the WTO remains responsive, inclusive, and resultsdriven.

Her leadership will be critical as the organisation continues to advance a resilient, rules-based, and equitable global trading system.”

WTO outlook

At a special General Council meeting held between November 28 and 2024, Okonjo-Iweala outlined her forward-looking vision for the WTO.

In her epoch-making acceptance speech to the WTO General Council, entitled; Thoughts and Vision for the Next Four Years, re-appointed Okonjo-Iweala recalled the core objective of the WTO, declaring that; “it was created to serve people, to help enhance their living standards, create jobs, and support sustainable development.

This is clear in the preamble of the founding Marrakesh Agreement. This purpose of the organisation is my north star. It is what I go back to repeatedly during even the most difficult days here.

‘‘The WTO is about people, so let us not forget that the multi-lateral trading system with the WTO at its core has helped to lift over 1.5 billion people out of absolute poverty.

It has helped create millions of good jobs in goods and services trade all over the world, and it is certainly contributing towards a livable planet through its diffusion and scaling of renewable technologies and climate mitigation and adaptation solutions.

“Let us not forget that even after you factor in all the free trade Agreements (FTAs) and Regional Trade Agreements (RTAs), the WTO rules underpin 75-80% of world goods trade because many bilateral and regional agreements are built on the WTO template.

‘‘Just imagine what would happen if this platform were to disappear—the chaos and uncertainty that businesses and households would face with respect to jobs and well-being.”

Speaking to some of WTO’s achievements under her watch recently in her remarks on her endorsement for a second tenure, she said: “MC13 also saw an important ministerial declaration on the key role of the Technical Barriers to Trade (TBT) Committee to promote regulatory cooperation.

“The e-commerce moratorium was also extended, and the work programme reinvigorated, while a new plurilateral agreement – the Services Domestic Regulation (SDR) Agreement negotiated by 67 members covering 90% of the world services trade; was welcomed by ministers.

“Quite importantly, Ministers also took time, for the very first time in a ministerial Conference (MC), to engage in dialogue on new issues such as trade and sustainable development, including trade and industrial policy and policy space for industrialisation and trade and inclusion.

And also very importantly for the WTO, two new members, Timor Leste and Comoros, acceded to the organization-the first in 8 years.”

Tinubu’s view

Nigeria, and by extension Africa, stands the chance of benefitting from Okonjo-Iweala’s WTO-led trade policy. In a statement by President Bola Ahmed Tinubu lauding her second tenure appointment, he expressed confidence that Okonjo-Iweala’s leadership will continue to solidify the WTO’s role as a “critical pillar of inclusive global economic growth and good governance,” in the years ahead.

In a statement issued by Bayo Onanuga, Tinubu said her announcement underscores Nigeria’s prominent role in the global economic landscape and the country’s continued backing of visionary leadership on the world stage.

He described the reappointment as a testament to Okonjo-Iweala’s exceptional leadership and the trust the international community places in her ability to foster sustainable global economic development.

According to Tinubu, ‘‘The reelection of Dr Ngozi Okonjo-Iweala unopposed for a second consecutive tenure as WTO Director-General will project Nigeria’s image positively globally and show our country’s growing diplomatic influence.

“Nigeria’s trade interest will be positively served with a Nigerian being the DG of the WTO. She will also serve as Nigeria’s trade ambassador and Africa’s trade advocate.’’

‘‘Dr Ngozi Okonjo-Iweala’s position will increase Nigeria’s trading credibility and expose the country to more beneficial trade deals with other countries.

She really tried to project African countries as a continent of trading opportunities in her first tenure, and I believe she will carry on the crusade in her second tenure as well.’’

Expert’s views

Gbolade Gabriel Idakolo, a Wealth Management expert and the CEO of Emperor Thrift and Credit Company, based in Abuja, said her second tenure reappointment unopposed by WTO nation members speaks to her achievements.

He said, “The reappointment of Dr Ngozi OkonjoIweala unopposed for a second consecutive tenure as WTO Director General will project Nigeria’s image positively globally and show our country’s growing diplomatic influence.

Nigeria’s trade interest will be positively served with a Nigerian being the DG of the WTO. She will also serve as Nigeria’s trade ambassador and Africa’s trade advocate”.

“Dr Ngozi Okonjo-Iweala’s position will increase Nigeria’s trading credibility and also expose the country to more beneficial trade deals with other countries.

She really tried to project African countries as a continent of trading opportunities in her first tenure, and I believe she will carry on the crusade in her second tenure as well,” he said.

Delta State Governor, Sheriff Oborevwori, while congratulating the WTO DG on her reappointment fir a second tenure, described her reappointment without any opposition as a reflection of the hard work she put in during her first appointment.

“Your appointment is indeed a testament to your competence and experience as a renowned economist and international development expert,” noted the governor.

The United Kingdom, International Chamber of Commerce (ICC), and several world organisations and individuals applauded her reappointment. The UK Secretary of State for Foreign, Commonwealth, and Development Affairs, David Lammy, lauded her re-appointment.

“The World Trade Organisation is a key enabler for UK growth, development, and security, and the UK will continue engaging with its members on important issues,” he disclosed.

Also, Douglas Alexander, Minister of State for Trade Policy of the United Kingdom, said, “The UK admires her strength of leadership. We also share her vision that open and free trade can secure sustainable and inclusive growth and development.”

Prior to WTO appointment

Okonjo-Iweala’s rise to the pinnacle of her career as DG of WTO on March 1, 2021, is a culmination of over five decades of hard work and consistent contributions to world economic growth and developments.

A global finance expert, an economist of international repute with over 40 years’ experience, working in Asia, Africa, Europe, Latin America, and North America. Okonjo-Iweala was formerly Chair of the Board of Gavi, the Vaccine Alliance.

She was previously on the boards of Standard Chartered PLC and Twitter Inc. She was appointed as African Union (AU) Special Envoy to mobilise international financial support for the fight against COVID-19 and WHO Special Envoy for Access to COVID-19 Tools Accelerator.

She is a skilled negotiator and has brokered numerous agreements that have produced win-win outcomes in negotiations.

She is regarded as an effective consensus builder and an honest broker enjoying the trust and confidence of governments and other stakeholders.

Previously, Okonjo-Iweala twice served as Nigeria’s Finance Minister (2003-2006 and 2011-2015) and briefly served as Foreign Affairs Minister in 2006, the first woman to hold both positions.

She distinguished herself by carrying out major reforms that improved the effectiveness of these two ministries and the functioning of the government machinery.

She had a 25-year career at the World Bank as a Development Economist, rising to the number two position of Managing Director, Operations.

As a Development Economist and Finance Minister, Okonjo-Iweala steered her country through various reforms, ranging from macroeconomic to trade, financial, and real sector issues.

As Finance Minister, she was involved in trade negotiations with other West African countries and contributed to the overhaul of Nigeria’s trade policy, enabling it to enhance its competitiveness.

She is renowned as the first female and African candidate to contest for the Presidency of the World Bank Group in 2012, backed by Africa and major developing countries in the first truly contestable race for the world’s highest development finance post.

As Managing Director of the World Bank, she had oversight responsibility for the World Bank’s $81 billion operational portfolio in Africa, South Asia, Europe, and Central Asia.

Okonjo-Iweala spearheaded several World Bank initiatives to assist low-income countries during the 2008-2009 food crisis and later during the financial crisis. In 2010, she was Chair of the World Bank’s successful drive to raise $49.3 billion in grants and low-interest credit for the poorest countries in the world.

As Minister of Finance in Nigeria, she spearheaded negotiations with the Paris Club of Creditors that led to the wiping out of $30 billion of Nigeria’s debt, including the outright cancellation of $18 billion.

In her second term as Finance Minister, OkonjoIweala was responsible for leading reforms that enhanced the transparency of government accounts and strengthened institutions against corruption, including the implementation of the GIFMS (Government Integrated Financial Management System), the IPPMS (Integrated Personnel and Payroll Management System), and the TSA (Treasury Single Accounts).

Okonjo-Iweala has been listed in the Top 100 Most Powerful Women in the World (Forbes, 2023, 2022, 2015, 2014, 2013, 2012 and 2011); as one of the Top 100 Most Influential People in the World (TIME, 2014 and 2021); one of the 25 most influential women (Financial Times, 2021); Minister of the Decade, People’s Choice Award by Nigeria’s Thisday Newspaper (2020); one of Transparency International’s Eight Female Anti-Corruption Fighters Who Inspire (2019); one of the 50 Greatest World Leaders (Fortune, 2015); the Top 100 Global Thinkers (Foreign Policy, 2011 and 2012);

The Top Three Most Powerful Women in Africa (Forbes, 2012); the Top 10 Most Influential Women in Africa (Forbes, 2011); the Top 100 Women in the World (The UK Guardian, 2011); the Top 150 Women in the World (Newsweek, 2011); and the Top 100 most inspiring people in the World Delivering for Girls and Women (Women Deliver, 2011).

She has also been listed among 73 “brilliant” business influencers in the world by Condé Nast International. Other awards In 2023, she was awarded the Lord Byron International Prize from the Society for Hellenism and Philhellenism, the Global Economy Prize from the Kiel Institute for the World Economy, and the 2022 Laureate Prize of Ambassadors from the International Organisation of La Francophonie.

In 2022, she obtained the Global Leadership Award from the American Academy of Achievement. In 2021, she received a Global Leadership Award from the United Nations Foundation as a “Champion for Global Change.”

In 2020, she became an Angelopoulos Global Public Leader at Harvard University Kennedy School.

She was also appointed to the Presidential Economic Advisory Council (PEAC) for the President of South Africa, His Excellency Cyril Ramaphosa, in 2020. In 2019, Okonjo-Iweala was elected to the American Academy of Arts and Sciences.

In 2017, she received the Madeleine K. Albright Global Development Award from the Aspen Institute, the Women’s Economic Empowerment Award from WEConnect International, and the Vanguard Award from Howard University.

In 2016, she received the Power with Purpose Award from the Devex Development Communications Network and the Global Fairness Award from the Global Fairness Initiative in recognition of her contribution to sustainable development.

She was also conferred high national honours from the Republic of Cote d’Ivoire and the Republic of Liberia.

She was also the recipient of Nigeria’s second highest national honour, Grand Commander of the Order of the Niger (GCON, 2022), and Nigeria’s third highest National Honour, Commander of the Federal Republic (CFR).

In 2023, she received the Grand Cross of the Order of Rio Branco from the Federative Republic of Brazil.

In addition, Okonjo-Iweala has been awarded the David Rockefeller Bridging Leadership Award (2014); the President of the Italian Republic Gold Medal by the Pia Manzu Centre (2011); the Global Leadership Award by the Chicago Council on Global Affairs (2011); the Global Leadership Award by the Columbia University School of International and Public Affairs (2010);

The Bishop John T. Walker Distinguished Humanitarian Service Award (2010), the Humanitarian Award for a Lifetime of Public Service and Advocacy of Sustainable International Development of the United Nations Association of New York (2022), and the Alumnae Recognition Award from the American Association of University Women (2022).

She was named Finance Minister of the Year (Africa Investor Magazine, 2014); Finance Minister of the Year for Africa and the Middle East (THE BANKER, 2004); Global Finance Minister of the Year (EUROMONEY, 2005); Finance Minister of the Year for Africa and the Middle East (Emerging Markets Magazine, 2005); and Minister of the Year (THISDAY, Newspaper 2004 and 2005).

Okonjo-Iweala is the founder of Nigeria’s firstever indigenous opinion-research organisation, NOIPolls. She also founded the Center for the Study of Economies of Africa (C-SEA), development research think tank based in Abuja, Nigeria.

She is a Distinguished Visiting Fellow at the Centre for Global Development and at the Brookings Institution, premier Washington D.C. think tanks.

Academic laurels

Okonjo-Iweala graduated magna cum laude with an A.B. in Economics from Harvard University (class of 1977) and earned a Ph.D. in Regional Economics and Development from the Massachusetts Institute of Technology (MIT, 1981).

She has received honourary degrees from 21 universities worldwide, including from Yale University, the University of Pennsylvania, Brown University, Trinity College (University of Dublin), Amherst College, Colby College, Tel Aviv University, Northern Caribbean University; Jamaica.

University of Amsterdam, American University, Nyenrode Business University, London School of Economics and Political Science, and a host of Nigerian universities, including Abia State University, Delta State University, Oduduwa University, Babcock University, and the Universities of Port Harcourt, Calabar, and Ife (Obafemi Awolowo).

She is the author of several books, including Women and Leadership: Real Lives, Real Lessons, co-authored with Julia Gillard (Penguin Random House, July 2020), Fighting Corruption is Dangerous.

The Story Behind the Headlines (MIT Press, 2018), Reforming the Unreformable: Lessons from Nigeria (MIT Press, 2012), and The Debt Trap in Nigeria: Towards a Sustainable Debt Strategy (Africa World Press, 2003). She also co-authored with Tijan Sallah the book Chinua Achebe: Teacher of Light (Africa World Press, 2003).

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