Lawyer: weak trade secrets expose businesses to legal risks
A Partner at SPA Ajibade & Co, Dr John Onyido, has warned that Nigeria’s failure to establish a clear legal framework for the protection of trade secrets poses significant risks
A Partner at SPA Ajibade & Co, Dr John Onyido, has warned that Nigeria’s failure to establish a clear legal framework for the protection of trade secrets poses significant risks to businesses and undermines the country’s competitiveness in the global economy.
Onyido made this position known while delivering a lecture titled “Trade secrets and economic development” at a private corporate luncheon organised by the firm in Lagos, to mark his completion of a Doctor of Philosophy (PhD) in International Economic Law.
Drawing from his doctoral research, Onyido argued that Nigeria’s intellectual property regime suffers from the absence of a codified and subject-specific legal structure for trade secrets, leaving businesses exposed to misappropriation and legal uncertainty.
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He noted that, unlike other areas of intellectual property such as patents, trademarks, and copyright, trade secrets in Nigeria are largely governed by common law principles and judicial discretion, resulting in weak enforcement and inconsistent legal outcomes.
According to him, this gap creates vulnerability for enterprises, particularly in sectors driven by proprietary information, including technology, finance, manufacturing, and emerging digital industries.
“Without a codified and enforceable trade secret regime, Nigeria risks falling behind in the global knowledge economy where information and innovation are key drivers of growth,” Onyido said.
He explained that trade secrets, ranging from algorithms and formulas to business strategies and industrial processes, constitute valuable commercial assets that require legal protection to prevent unlawful disclosure and exploitation.
The lecture highlighted key deficiencies in Nigeria’s legal system, including jurisdictional uncertainty, limited procedural safeguards, and inadequate enforcement mechanisms in disputes involving confidential business information.
Onyido further identified practical risks such as employee mobility, talent poaching, weak corporate compliance systems, and the growing threat of industrial espionage, all of which heighten the likelihood of data leakage in the absence of robust legal protections.
He emphasised that the issue goes beyond legal theory, describing trade secret protection as a critical determinant of a nation’s economic competitiveness and its ability to attract foreign direct investment.
The research also situated Nigeria within global and regional intellectual property trends, noting obligations under international legal frameworks and opportunities presented by the African Continental Free Trade Area (AfCFTA) Intellectual Property Protocol.
Onyido argued that aligning Nigeria’s legal regime with these frameworks would enhance investor confidence and facilitate cross-border commercial activity.
He called for urgent legislative reform to introduce a dedicated trade secrets law, alongside improved institutional coordination and policy alignment with international best practices.
“A subject-specific trade secrets law will strengthen innovation, protect businesses, and position Nigeria more competitively in global trade,” he said.
The lecture also drew distinctions between trade secrets and other intellectual property rights, noting that, unlike patents, trade secrets do not require formal registration but depend on the maintenance of confidentiality through legal and contractual safeguards such as non-disclosure agreements and internal controls.
To underscore their economic value, Onyido referenced global examples, including proprietary formulas and algorithms used by leading multinational corporations, noting that such assets often form the backbone of enterprise valuation.
However, he maintained that the absence of statutory backing in Nigeria limits the ability of courts and regulators to effectively protect such interests.
The event was attended by the Consul-General of South Africa in Lagos, business leaders, bank executives, legal practitioners, and clients of the firm.
Managing Partner of SPA Ajibade & Co, Babatunde Ajibade (SAN), commended Onyido’s academic achievement and reaffirmed the firm’s commitment to intellectual and professional development.
Ajibade disclosed that three partners of the firm, including himself, Onyido, and Kola Mayomi, now hold doctoral degrees, while other members of the firm are currently pursuing advanced academic qualifications.
He said the firm’s investment in academic excellence is part of a broader strategy to deepen legal expertise and enhance service delivery.
The event formed part of activities marking Onyido’s doctoral milestone, while also providing a platform for broader discourse on the role of legal frameworks, particularly intellectual property law, in driving sustainable economic development in Nigeria.
