The Central Bank of Nigeria (CBN) has directed banks, payment service banks (PSBs), and other financial institutions to immediately withdraw advertisements and promotional materials that fail to comply with consumer protection and fair marketing standards. This directive, issued through a circular signed by Olubunmi Ayodele-Oni, Director of the Compliance Department, followed a thematic review that exposed widespread inconsistencies in advertising practices across the financial sector ¹ ².
The review revealed that many institutions had violated disclosure and transparency requirements outlined in the Consumer Protection Regulations (2019) and the Guidelines on Advertisements by Deposit-Taking Financial Institutions (2000). The CBN highlighted that several adverts exaggerated benefits, omitted crucial information, or downplayed risks, misleading consumers and undermining market integrity. Comparative or superlative claims and promotional inducements such as lotteries and prize draws were also banned, as these could pressure consumers into uninformed financial decisions ¹ ³.
To enhance compliance, the CBN mandated that institutions submit detailed notifications before releasing advertisements. These notifications must include the duration, creative content, target audience, and internal approvals by legal and compliance departments. Additionally, financial institutions must provide proof that the advertised products or services have already been approved by the CBN. The apex bank clarified that this notification process is strictly for monitoring and does not constitute official approval or endorsement of the adverts ¹ ³ ⁴.
Financial institutions are required to withdraw all non-compliant adverts immediately and submit a compliance attestation within 30 days. This document, jointly signed by the institution’s Managing Director, Executive Compliance Officer, and Chief Compliance Officer, must confirm that all advertising practices align with applicable regulations. The CBN emphasized that institutions will remain fully accountable for ensuring adherence to these guidelines ¹ ³.
Starting January 2026, the CBN will conduct follow-up reviews to assess compliance levels across the industry. Institutions found violating the rules will face sanctions under the Banks and Other Financial Institutions Act (BOFIA) 2020 and Consumer Protection Regulations. The apex bank reiterated its commitment to promoting fairness, transparency, and responsible marketing practices within Nigeria’s financial system ¹ ² ³.
This move by the CBN seeks to protect consumers from misleading advertisements while fostering trust and accountability in the financial sector. By ensuring transparency and ethical marketing, the regulator aims to uphold the integrity of Nigeria’s financial ecosystem and empower consumers to make informed decisions ¹ ³.