The Central Bank of Nigeria (CBN), has ordered all banks, payment service banks, and other regulated financial institutions to immediately withdraw any advertisement or promotional material that violates consumer-protection and fair-marketing standards.
The directive was issued in a circular released on Thursday and signed by Olubunmi Ayodele-Oni on behalf of the Director of the CBN Compliance Department. It follows a thematic industry review that uncovered widespread lapses in how institutions interpret key provisions of the Consumer Protection Regulations 2019 and the 2000 Guidelines on Advertisements by Deposit-Taking Financial Institutions.
According to the apex bank, many institutions are still publishing adverts that exaggerate claims, conceal crucial information, downplay risks, or rely on unaudited financial statements—practices the CBN described as deceptive and harmful to market integrity.
The regulator warned that misleading marketing distorts competition and erodes trust in the financial system. It stressed that all public communication from financial institutions must be factual, balanced, and transparent.
The circular also prohibits adverts containing comparative or superlative claims or any form of de-marketing, whether explicitly stated or subtly implied. In addition, the CBN banned all chance-based promotional inducements—lotteries, raffles, prize draws, and similar schemes—saying they can pressure consumers into financial commitments they may not fully understand.
Tighter rules for future adverts
Under the strengthened framework, banks and other regulated institutions must now submit a detailed notification to the CBN before releasing any advert. This notification must specify the intended duration of the campaign, the creative content to be published or aired, the target demographics and locations, and written proof that the material has been cleared internally by the compliance and legal departments.
Institutions must also present evidence that the product or service being advertised has already received regulatory approval.
However, the CBN clarified that this notification is solely for monitoring and does not amount to approval or endorsement of the advert. Financial institutions will retain full responsibility for ensuring compliance with all laws and regulatory requirements.
The apex bank directed all institutions to immediately withdraw any existing advert that violates these standards. Within 30 days, they must file a compliance attestation jointly signed by the Managing Director or Chief Executive Officer, the Executive Compliance Officer, and the Chief Compliance Officer.
The attestation must confirm that all current advertising and promotional practices comply with regulatory expectations and the institution’s internal governance rules.
Industry-wide review to commence in 2026
The CBN announced that it will conduct a follow-up review from January 2026 to assess sector-wide compliance. Institutions found violating the rules will face sanctions in line with the Banks and Other Financial Institutions Act 2020 and the Consumer Protection Regulations.
The apex bank reiterated its commitment to promoting fairness, transparency, and responsible marketing practices across Nigeria’s financial system.
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