Central Bank Orders Financial Institutions to Pull Deceptive Ads

The Central Bank of Nigeria (CBN) has directed all banks, payment service banks, and other regulated financial institutions to immediately withdraw any advertisements or promotional materials that fail to meet established consumer-protection and fair-marketing standards.

The directive, outlined in a circular issued on Thursday and signed by Olubunmi Ayodele-Oni on behalf of the Director of the CBN’s Compliance Department, follows an industry review that highlighted inconsistencies in how institutions interpret disclosure, transparency, and marketing obligations under the Consumer Protection Regulations 2019 and the 2000 Guidelines on Advertisements by Deposit-Taking Financial Institutions.

The CBN noted that many institutions continue to publish adverts that exaggerate benefits, omit key information, obscure risks, or rely on unaudited financial statements. Such practices, the regulator said, mislead customers, distort competition, and undermine the integrity of the financial system.

The apex bank emphasised that all advertisements must be factual, balanced, and transparent. It also prohibited comparative, superlative, or de-marketing statements—whether direct or implied—and banned promotional inducements such as lotteries, lucky dips, prize draws, or other chance-based incentives that could pressure consumers into financial decisions without fully understanding associated risks.

Under the tightened compliance framework, financial institutions are now required to submit detailed notifications to the CBN before releasing any advert or marketing material. The notification must include the advert’s duration, creative content, intended demographic and geographic targets, and written confirmation of internal clearance by both the compliance and legal departments. Institutions must also provide evidence that the product or service being advertised has already received CBN approval.

The CBN clarified that this notification process is for monitoring purposes only and does not constitute prior approval or endorsement. Institutions remain fully responsible for ensuring compliance with all relevant laws and regulations.

All non-compliant adverts must be withdrawn immediately. Within 30 days, institutions must submit a compliance attestation jointly signed by the Managing Director or Chief Executive Officer, the Executive Compliance Officer, and the Chief Compliance Officer, confirming that all current advertising and promotional practices meet regulatory requirements and internal governance rules.

The regulator stated that from January 2026, it will conduct a follow-up review to assess industry compliance. Sanctions will be applied to any institution found violating the rules, in accordance with the Banks and Other Financial Institutions Act 2020 and the Consumer Protection Regulations.

The CBN reaffirmed its commitment to promoting fairness, transparency, and responsible marketing practices across Nigeria’s financial system.