Regulation of Insider Trading in Nigeria

Insider trading occurs where a person, being in possession of some confidential and price sensitive information not generally available to the public, utilizes such information to trade securities for his own benefit. The
premise for the prohibition of insider trading is the desirability of traders having equal access to information during trading. 

Section 315 of the Investments and Securities Act 2007 (“ISA”) defines an “insider” as any person connected with the company in any of the following ways:

a. a director of the company or a related company;
b. an officer of the company or a related company;
c. an employer of the company or a related company;
d. an employee of the company, involved in a professional or business relationship of the company;
e. any shareholder of the company owning five (5) per cent or more of any class of securities or any person who is or can be deemed to have any relationship with the company; or
f. members of the audit committee of a company.