Mainstreaming whistleblowing as a regulatory mechanism against fraud in Nigeria’s capital market

Abstract

Purpose This paper aims to analyze the importance and application of whistleblowing in the fight against fraud in Nigeria’s capital market. Design/methodology/approach Drawing from existing legislation and literature in the area, the paper (by adopting a doctrinal approach), analyzes the application of whistleblowing in the Nigerian capital market. Findings As a result of an inadequate legislative framework (a structure consisting mainly of mere policy directives and voluntary codes), whistleblowing is seldom used in Nigeria’s capital market. Originality/value This paper extends the body of knowledge in the area of whistleblowing in Nigeria’s capital market by not only identifying the non-utilization of the concept but also offers creative suggestions, which will help it is to normalize as a regulatory tool for reducing fraud in this sector.

Stock Markets and Industrial Development of Europe: Lessons for Nigeria

“…The progenitor of what is today known as the Nigerian Exchange Group (NGX), formerly Nigerian Stock Exchange was the Lagos Stock Exchange, which was founded on September 15, 1960, but began official operations on the 25th of August 1961 with 19 Securities listed for Trading (Nwosu et al, 2021). The operations were initially conducted inside the Central Bank building in Lagos Island with four firms as market dealers, namely Inlaks, John Holt, C.T Browning, and Investment Company of Nigeria (ICON).…”

Legal protection for whistleblowers in uncovering fraud in government

“…Any crime compared to a corpse hiding for a long time would reek of its stench. Therefore, whistleblowing was created to encourage everyone to covertly report various possible fraud practices and all immoral activities inside and outside the organization (Nwosu, Nwoke, Ajibo, Nwodo, & Okoli, 2021). However, the success of whistleblowing is very dependent on the role of the whistleblower in uncovering the truth.…”