CBN clamps down on misleading bank adverts, orders immediate withdrawal

The Central Bank of Nigeria (CBN) has ordered all banks, payment service banks and other regulated financial institutions to immediately withdraw any advertisement or promotional material that falls short of consumer-protection and fair-marketing standards.

The directive, issued in a circular on Thursday and signed by Olubunmi Ayodele-Oni for the Director of Compliance, followed a thematic industry review that uncovered widespread violations of disclosure and transparency rules in the Consumer Protection Regulations 2019 and the 2000 Guidelines on Advertisements by Deposit-Taking Financial Institutions.

According to the apex bank, several institutions continue to run adverts that exaggerate benefits, withhold key information, conceal risks or rely on unaudited financial statements, practices it warned mislead consumers, distort competition and undermine confidence in the financial system.

The regulator cautioned that all marketing materials must be “factual, balanced and transparent,” adding that comparative, superlative or de-marketing claims, whether direct or implied, are now expressly prohibited.

It also outlawed promotional inducements such as lotteries, lucky dips, prize draws and any chance-based incentives, noting that such schemes can pressure consumers into financial decisions without properly understanding the risks involved.

Under the strengthened compliance framework, banks and other institutions must now notify the CBN before publishing any advert, providing details such as the duration, creative content, target demographics and locations, as well as written confirmation of internal clearance by their compliance and legal departments.

They must also submit evidence that the advertised product or service has already been approved by the CBN. The bank clarified, however, that this notification requirement does not amount to pre-approval or endorsement, and institutions remain fully responsible for abiding by all regulations.

The CBN directed all institutions to immediately withdraw non-compliant adverts, and to file a compliance attestation within 30 days, jointly signed by the Managing Director or Chief Executive Officer, the Executive Compliance Officer and the Chief Compliance Officer.

A follow-up industry-wide review will be conducted from January 2026 to assess the level of adherence. The apex bank warned that sanctions will be imposed on violators in accordance with the Banks and Other Financial Institutions Act 2020 and the Consumer Protection Regulations.

The bank reaffirmed its commitment to ensuring fairness, transparency and responsible marketing practices across the financial system.