The Central Bank of Nigeria has mandated all banks, payment service banks, and other regulated financial institutions to immediately withdraw any advertisement or promotional material that does not meet established consumer-protection and fair-marketing standards.
This directive, as specified in a circular issued on Thursday and signed by Olubunmi Ayodele-Oni on behalf of the Director of the CBN’s Compliance Department, follows a thematic industry review that revealed widespread inconsistencies in how institutions interpret disclosure, transparency, and fair-marketing obligations under the Consumer Protection Regulations 2019 and the 2000 Guidelines on Advertisements by Deposit-Taking Financial Institutions.
The apex bank’s review found that many institutions continue to disseminate advertisements that exaggerate benefits, omit vital information, obscure risks, or rely on unaudited financial statements.
The CBN warned that such practices mislead customers, disrupt market competition, and undermine the integrity of the financial system.
The regulator highlighted that all adverts must be factual, balanced and transparent.
It cautioned that comparative, superlative or de-marketing statements, whether express or implied, are strictly prohibited.
It also banned promotional incentives such as lotteries, lucky dips, prize draws and other chance-based inducements, noting that such schemes could influence consumers into financial decisions without fully grasping the associated risks.
New compliance steps for all advertisements. Under the tightened framework, financial institutions must now submit detailed notifications to the CBN prior to releasing any advert or marketing material.
The notification must include the duration of the advert, creative content to be aired or published, intended demographic and geographic targets, and written confirmation of internal clearance by both the compliance and legal departments.
Institutions are also required to provide evidence that the underlying product or service being advertised has already been approved by the CBN.
The apex bank underscored that this notification process is strictly for monitoring purposes and does not imply prior approval or endorsement of the advert, maintaining that banks and other financial institutions will remain fully responsible for ensuring full compliance with all laws and regulations.
The regulator directed all institutions to withdraw any advert that does not comply with the standards immediately, emphasizing that they must, within 30 days, submit a compliance attestation jointly signed by the Managing Director or Chief Executive Officer, the Executive Compliance Officer, and the Chief Compliance Officer.
As stated, the attestation is required to confirm that current advertising and promotional practices meet regulatory requirements and internal governance rules.
Additionally, the CBN has announced a follow-up review scheduled for January 2026 to evaluate the level of compliance within the industry.
Institutions that violate the rules will face sanctions, as stipulated in the Banks and Other Financial Institutions Act 2020 and the Consumer Protection Regulations,” the statement added.
The apex bank remains committed to fostering fairness, transparency, and responsible marketing practices in the financial system.
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