CBN Orders Banks to Withdraw Non-Compliant Advertisements: Ensures Consumer Protection
The Central Bank of Nigeria (CBN) has issued a stern directive to Deposit Money Banks (DMBs), Payment Service Banks (PSBs), and other financial institutions to immediately withdraw all advertisements and promotional materials that violate existing regulations. The move underscores the apex bank’s commitment to transparency and fair marketing practices in the financial sector.
The directive, outlined in a circular posted on the CBN website on Thursday, also requires institutions to submit a compliance attestation within 30 days. This attestation must be jointly signed by the Managing Director/CEO, Executive Compliance Officer, and Chief Compliance Officer, confirming that all advertising and promotional practices adhere to the applicable laws, regulations, and internal governance processes.
CBN warned that starting January 2026, it will conduct follow-up reviews and impose sanctions for any violations. The regulatory actions will be enforced under the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Consumer Protection Regulations, signaling a stricter regulatory environment for banks and other financial entities.
The directive follows a thematic review of industry advertising practices, which revealed inconsistencies in how institutions apply disclosure, transparency, and fair-marketing requirements. The circular emphasizes that all advertisements must be factual, balanced, and transparent. Misleading claims, obscured risks, exaggeration of benefits, omission of material information, or references to unaudited financial statements are strictly prohibited.
Additionally, the CBN banned comparative, superlative, or de-marketing statements, whether direct or implied, and promotions that involve inducements such as lotteries, prize draws, or other chance-based incentives. The regulator stressed that financial institutions bear full responsibility for ensuring advertising compliance before publication, highlighting the need for diligent internal oversight.
source: newtelegraphs