THE LAW AND ECONOMICS OF INSIDER TRADING ON NIGERIA CAPITAL MARKET

Insider trading is one of the corporate ills that has existed since the emergence of the abstract entity known as company. This corporate ill occurs where a person or group of persons who are in possession of some confidential and price sensitive information not generally available to the public utilize such information to buy or sell securities for the benefit of himself itself or any person. This causes serious economic problems. It is therefore the objectives of this research to critically examine the legal framework for the regulation of insider trading in corporate securities in Nigeria with particular emphasis on stocks. The methodology that will be adopted in this research is essentially critical. The researcher will also use both primary and secondary data. Primary sources of data are Legislation and Case Law while secondary sources are textbooks, newspaper articles, journals and internet sources. A comparative method will also be used. The research reveals that lack of adequate legal framework to deal with insider trading and limited company specific policy with respect to insider trading. The researcher therefore recommends a development of robust legislative framework and specific company policy for the regulation of insider trading in Nigeria.