TRADE SECRETS UNDER NIGERIAN LAW: AN APPRAISAL OF COMMON LAW PRINCIPLES IN THE ABSENCE OF DEDICATED LEGISLATION

Authors

  • Akintububo Olaleye Steve Joseph Ayo Babalola University image/svg+xml Author

DOI:

https://doi.org/10.5281/zenodo.22124608

Keywords:

Trade Secrets; Breach of Confidence; Intellectual Property; Misappropriation; Innovation Economy; Nigeria

Abstract

Trade secrets constitute one of the most commercially significant yet systematically neglected branches of intellectual property law in Nigeria. In the global knowledge economy, the security of commercially valuable information — encompassing formulas, processes, algorithms, customer databases, and technical know-how — is a prerequisite for innovation, foreign direct investment, and competitive economic development. Nigeria, however, possesses no dedicated trade secrets statute. Despite its membership of the World Trade Organization since 1995 and its binding obligations under Article 39 of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), the country's intellectual property framework remains conspicuously silent on trade secrets, leaving right-holders dependent on the English common law doctrine of breach of confidence and fragmentary contractual arrangements. This article identifies five structural problems arising from this legislative vacuum: a definitional void that introduces legal uncertainty; a remedial deficit that renders enforcement costly and unpredictable; evidentiary challenges compounded by unsettled standards for digital evidence; the absence of specific criminal liability for trade secret misappropriation; and profound societal consequences that fall disproportionately on small and medium enterprises, indigenous communities, women innovators, and technology start-ups. Employing a doctrinal methodology that analyses primary legal materials — statutes, case law, and international instruments — alongside comparative and socio-legal analysis, the article critically appraises the common law framework against the legislative models of the United States, the European Union, and the United Kingdom. It concludes that the common law framework is structurally incapable of meeting the demands of a modern, inclusive innovation economy, and that the enactment of a dedicated Nigerian Trade Secrets Act is both legally necessary — to fulfil Nigeria's TRIPS obligations — and morally urgent, given the disproportionate burden the legislative gap places on the most economically vulnerable actors in Nigeria's innovation ecosystem. Ten specific legislative and institutional recommendations are proffered.

References

Robert G Bone, 'A New Look at Trade Secret Law: Doctrine in Search of Justification' (1998) 86 California Law Review 241, 244.

Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) 1994, Art 39(1).

Uniform Trade Secrets Act (UTSA) 1979 (USA, amended 1985); Defend Trade Secrets Act (DTSA) 2016 (USA), 18 USC s 1836; Directive (EU) 2016/943 of the European Parliament and of the Council on the Protection of Undisclosed Know-How and Business Information (Trade Secrets) [2016] OJ L157/1; Trade Secrets (Enforcement, etc.) Regulations 2018, SI 2018/597 (UK).

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OECD, Trade Secrets: An Important but Misunderstood Form of Intellectual Property (OECD Publishing 2021) 7.

This article adopts a doctrinal methodology: it analyses primary legal materials (statutes, case law, international instruments) and secondary scholarship through the lens of legal doctrine, supplemented by comparative and socio-legal analysis. On doctrinal methodology generally see Terry Hutchinson and Nigel Duncan, 'Defining and Describing What We Do: Doctrinal Legal Research' (2012) 17(1) Deakin Law Review 83.

TRIPS Agreement (n 2), Art 39(2).

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Ibid 63; see also Tunde Fagbohunlu SAN, 'Confidentiality Obligations in Nigerian Employment Law' (2020) 9(1) Nigerian Bar Journal 34, 39.

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Cybercrimes Act 2015 (n 11), ss 6(2)(a), 13–14.

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TRIPS Agreement (n 2), Art 39(2).

WTO, Council for TRIPS: Review of Legislation, IP/C/W/351/Rev.1 (2003) para 14.

Nigeria acceded to the WTO Agreement on 1 January 1995: WTO, Members and Observers https://www.wto.org accessed 20 March 2025.

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Bekova (n 47) 212; OECD (n 6) 11.

UTSA (n 3), s 1(4) (as amended 1985). See also Robert G Bone (n 1) 251.

DTSA 2016 (n 3), s 2(b); 18 USC s 1839(3)(A)–(B).

EU Directive 2016/943 (n 3), Art 2(1)(a)–(c).

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Ibid reg 3(2) (preservation of existing common law rights).

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Ibrahim (n 18) 68.

Madubuike (n 12) 103.

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Constitution of the Federal Republic of Nigeria 1999 (as amended), s 44(1); see also Attorney-General of Lagos State v Eko Hotels Ltd [2006] 18 NWLR (Pt 1011) 378.

Owasanoye (n 44) 115; WIPO, Trade Secrets: Policy Issues and Legislative Options, WIPO/IP/GVA/00/1 (2000) para 3.

Okonkwo (n 13) 28.

WIPO, Global Innovation Index 2023 (WIPO 2023) 18 (Nigeria ranked 109th out of 132 economies); WIPO, Global Innovation Index 2024 (WIPO 2024) 22.

World Bank, Nigeria Digital Economy Diagnostic (World Bank 2019) 4; National Digital Economy Policy and Strategy 2020–2030 (Nigeria), para 3.2.

Okonkwo (n 13) 22.

PricewaterhouseCoopers, Nigeria Economic Outlook 2023 (PwC 2023) 14; World Bank, Doing Business 2023: Nigeria (World Bank 2023) 7.

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Mgbeoji (n 56) 78; Graham Dutfield, Intellectual Property, Biogenetic Resources and Traditional Knowledge (Earthscan 2004) 67.

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Mgbeoji (n 56) 81.

Abiodun Olasupo, 'Women Entrepreneurs and Intellectual Property in Nigeria: Challenges and Opportunities' (2022) 7(1) African Journal of Law and Policy 44, 51.

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Chioma Agomo, Gender, Law and Development in Nigeria (NIALS Press 2018) 112.

Olasupo (n 60) 53.

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National Bureau of Statistics, Youth Unemployment Report Q4 2023 (NBS 2024) 2 (Nigeria's youth unemployment rate stood at approximately 53.4 per cent).

Bekova (n 47) 215; Shamnad Basheer and Mrinalini Kochupillai, 'Promoting "Frugal Innovation": IP and Development' (2012) 4(1) Law and Development Review 82, 101.

National Information Technology Development Agency (NITDA), Annual Report 2022 (NITDA 2023) 11.

UNCTAD, Technology and Innovation Report 2023: Opening Green Windows (UN 2023) 87–88.

National Intellectual Property Policy and Strategy 2021 (n 15), para 4.3.1. The Policy expressly acknowledges "the absence of a dedicated trade secret regime" as a priority area for legislative reform.

WIPO, Model Provisions on Protection Against Unfair Competition (WIPO 1996) Art 6.

National Judicial Institute, Report on Specialised Commercial Court Training Programme 2022 (NJI 2023) 3.

Arbitration and Mediation Act 2023, s 41; Lagos State Multi-Door Courthouse (LMDC), Annual Report 2022 (LMDC 2023).

AfCFTA Protocol on Intellectual Property Rights (n 27), Art 17(2)(a)–(c).

Terry Hutchinson and Nigel Duncan, 'Defining and Describing What We Do: Doctrinal Legal Research' (2012) 17(1) Deakin Law Review 83, 84.

See further William Twining and David Miers, How to Do Things with Rules (5th edn, Cambridge University Press 2010) 9–10 (on doctrinal analysis as systematic exposition and critique of legal doctrine).

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Published

2026-08-27

How to Cite

TRADE SECRETS UNDER NIGERIAN LAW: AN APPRAISAL OF COMMON LAW PRINCIPLES IN THE ABSENCE OF DEDICATED LEGISLATION. (2026). Neewaj Journal of Multidisciplinary Research & Innovations, 2(3). https://doi.org/10.5281/zenodo.22124608

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