The Central Bank of Nigeria (CBN) has issued a directive to all Nigerian banks, payment service banks, and other financial institutions to immediately withdraw advertisements that violate consumer protection rules. This move follows a review of marketing practices in the financial sector, which revealed inconsistencies in the application of disclosure, transparency, and fair marketing requirements.
The CBN’s compliance department, in a circular signed by Director Olubunmi Ayodele-Oni, ordered the removal of all non-compliant adverts. The regulator emphasized 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 submitting adverts for prior notification must now include campaign timelines, creative materials, target audience details, and written confirmation of internal legal and compliance clearance, along with proof that the underlying product has CBN approval.
The CBN clarified that such 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 that it will conduct a follow-up review in January 2026 and apply sanctions 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. The CBN’s move is part of its efforts to strengthen consumer protection and maintain confidence in the banking system. With this new directive, financial institutions in Nigeria will be required to adhere to stricter advertising standards, ensuring that consumers receive accurate and reliable information about financial products and services.
