The Central Bank of Nigeria (CBN) has issued a stern directive to banks, payment service banks (PSBs), and other financial institutions (OFIs), ordering the immediate withdrawal of all advertisements and promotional materials that violate existing consumer-protection regulations.
This mandate was detailed in a recent circular signed by Olubunmi Ayodele-Oni, Director of the CBN’s Compliance Department. The directive follows a thematic review of advertising and marketing practices across the financial sector, which revealed a significant variation in how institutions interpret and apply the disclosure, transparency, and fair-marketing requirements stipulated in the Consumer Protection Regulations (2019) and the Guidelines on Advertisements by Deposit-Taking Financial Institutions (2000).
To rectify these regulatory lapses, the apex bank has instructed all financial institutions to take down any non-compliant adverts immediately and to ensure that all future marketing materials are “factual, balanced, and transparent.”
The CBN has explicitly prohibited several advertising practices deemed misleading or harmful to consumers. These include making claims that could confuse consumers or obscure risks, such as exaggerating benefits, omitting crucial information, or using unaudited financial statements. The use of comparative or superlative language that amounts to de-marketing or disparaging competitors is also strictly forbidden. Furthermore, the bank has banned promotional activities based purely on chance, such as lotteries, prize draws, lucky dips, and other similar chance-based incentives designed to induce consumer participation.
For financial institutions required to submit adverts for prior notification, the CBN has established a more rigorous clearance and compliance process. Notifications must now include the intended duration and timelines of the advertisement, the creative materials and the target audience, written confirmation of internal clearance jointly provided by the institution’s legal and compliance departments, and proof that the underlying product or service being advertised has received CBN approval. The CBN clarified that these notifications are strictly for monitoring purposes and do not constitute CBN approval or endorsement, emphasizing that the institutions remain fully responsible for ensuring regulatory adherence before any publication.
To ensure immediate compliance, the CBN has mandated all affected institutions to submit a formal compliance attestation within 30 days. This attestation must be jointly signed by the managing director or chief executive, the executive compliance officer, and the chief compliance officer, confirming full alignment with all applicable regulations. The CBN announced a firm enforcement timeline, stating that beginning in January 2026, it will conduct a follow-up review, and any subsequent breaches will result in sanctions imposed in line with the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Consumer Protection Regulations.
