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Nigeria Banks Ordered To Withdraw Misleading Adverts Immediately

The Central Bank of Nigeria (CBN) has issued a directive requiring all Nigerian banks, payment service banks, and other financial […]

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The Central Bank of Nigeria (CBN) has issued a directive requiring all Nigerian banks, payment service banks, and other financial institutions to immediately withdraw advertisements that violate consumer‑protection rules. This action follows a review of marketing practices in the financial sector, which uncovered inconsistencies in the application of disclosure, transparency, and fair‑marketing requirements.

In a circular signed by Director Olubunmi Ayodele‑Oni, the CBN’s compliance department ordered the removal of all non‑compliant adverts. The regulator stressed that future promotional materials must be factual, balanced, and transparent, and warned against misleading claims, exaggerated benefits, incomplete information, unaudited financial results, and comparative language that could de‑market competitors. Additionally, the CBN prohibited chance‑based promotional inducements such as lotteries, prize draws, and lucky dips.

Financial institutions that submit adverts for prior notification must now include campaign timelines, creative materials, target‑audience details, and written confirmation of internal legal and compliance clearance, together with proof that the underlying product has CBN approval. The CBN clarified that these notifications are for monitoring purposes only and do not constitute approval.

All affected institutions must file a compliance attestation within 30 days, signed by the chief executive and compliance leads. The regulator announced a follow‑up review in January 2026 and warned that sanctions will be applied for violations under the Bank and Other Financial Institutions Act (BOFIA) 2020 and the Consumer Protection Regulations.

The directive aims to promote transparency and fairness in the financial sector, protecting consumers from misleading advertisements. It is part of the CBN’s broader effort to strengthen consumer protection and maintain confidence in the banking system, ensuring that Nigerians receive accurate and reliable information about financial products and services.

Ifunanya

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