The Central Bank of Nigeria (CBN) has issued a stern directive to all banks, payment service banks, and other regulated financial institutions, demanding the immediate withdrawal of any advertisement or promotional material that misleads consumers or violates established marketing standards. The move comes after a thematic review revealed widespread inconsistencies in how institutions interpret disclosure, transparency, and fair-marketing requirements.
According to the circular signed by Olubunmi Ayodele-Oni on behalf of the CBN’s Compliance Department, many adverts exaggerate benefits, omit key information, obscure risks, or rely on unaudited financial statements. The regulator warned that such practices not only mislead customers but also distort competition in the banking sector and undermine trust in Nigeria’s financial system.
The CBN emphasized that all promotional content must be factual, balanced, and transparent. Comparative, superlative, or de-marketing statements—whether explicit or implied—are strictly prohibited. The regulator also banned lotteries, prize draws, and other chance-based incentives, noting that these promotions could pressure consumers into financial decisions without fully understanding potential risks.
Under the new compliance framework, financial institutions must now submit detailed notifications to the CBN before releasing any adverts. This includes the creative content, intended demographic and geographic targets, duration of publication, and confirmation from compliance and legal departments. Importantly, banks must also show evidence that the underlying product or service has received prior CBN approval. The circular clarifies that submission does not constitute prior endorsement—the institutions remain fully responsible for compliance.
All non-compliant adverts must be withdrawn immediately, with a compliance attestation required within 30 days, signed by the Managing Director/CEO, Executive Compliance Officer, and Chief Compliance Officer. The CBN will conduct follow-up reviews starting January 2026, with sanctions enforced against violators under the Banks and Other Financial Institutions Act 2020 and Consumer Protection Regulations. The regulator reaffirmed its commitment to promoting fairness, transparency, and responsible marketing across Nigeria’s financial industry.
source: punch