By Obinna Uballa
The Central Bank of Nigeria (CBN), has directed all banks, payment service banks and other regulated financial institutions to immediately withdraw any advertisement or promotional material that fails to meet consumer-protection and fair-marketing standards.
The order, issued in a circular dated Thursday and signed by Olubunmi Ayodele-Oni for the Director of the CBN’s Compliance Department, followed a thematic industry review that uncovered widespread breaches 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.
According to the apex bank, many institutions continue to publish adverts that exaggerate benefits, omit crucial information, conceal risks or rely on unaudited financial statements. Such practices, it warned, mislead customers, distort market competition and undermine confidence in the financial system.
The CBN stressed that all adverts must be factual, balanced and transparent, adding that comparative, superlative and de-marketing claims – whether direct or implied – are strictly prohibited.
It also banned promotional inducements such as lotteries, lucky dips, prize draws and other chance-based incentives, noting that these schemes can pressure consumers into financial decisions without understanding the risks involved.
Under the new framework, institutions must now notify the CBN before releasing any advert or marketing material. Each notification must include the duration of the campaign, creative content, target audience, and written confirmation of internal clearance by compliance and legal departments.
They must also show that the product or service being advertised has already been approved by the CBN.
The regulator made it clear that this notification process is for monitoring only and does not amount to prior approval or endorsement of the advert. Banks and other financial institutions will remain fully responsible for meeting all regulatory and legal obligations.
The CBN ordered institutions to immediately pull down any non-compliant adverts and, within 30 days, submit a compliance attestation signed jointly 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 meet regulatory standards and internal governance requirements.
A follow-up industry-wide review will begin in January 2026, the bank said, warning that sanctions will apply to any institution found in violation, in line with the Banks and Other Financial Institutions Act 2020 and relevant consumer-protection rules.
The apex bank reaffirmed its commitment to promoting fairness, transparency and responsible marketing practices across the financial system.
