The Central Bank of Nigeria (CBN) has directed all banks, payment service banks, and other regulated financial institutions to immediately withdraw any advertisement or promotional material that fails to comply with existing consumer-protection and fair-marketing rules.
The directive is contained in a circular issued on November 27, 2025, signed by Olubunmi Ayodele-Oni for the Director of the CBN’s Compliance Department.
The circular followed a thematic industry review that uncovered widespread inconsistencies in how financial institutions interpret disclosure, transparency, and fair-marketing requirements under the Consumer Protection Regulations 2019 and the Guidelines on Advertisements by Deposit-Taking Financial Institutions issued in 2000.
According to the apex bank, the review showed that many institutions continue to publish adverts that exaggerate benefits, omit key information, obscure risks, or rely on unaudited financial statements. The CBN warned that such practices mislead customers, distort market competition and undermine the integrity of the financial system.
The regulator emphasised that all adverts must be factual, balanced and transparent. It warned that comparative, superlative or de-marketing statements—whether direct or implied—are strictly prohibited. It also banned promotional inducements such as lotteries, lucky dips, prize draws and other chance-based incentives, noting that such schemes could pressure consumers into financial decisions without fully understanding the associated risks.
New compliance steps for all advertisements
Under the tightened framework, financial institutions must now submit detailed notifications to the CBN before releasing any advert or marketing material. The notification must include the duration of the advert, creative content to be aired or published, intended demographic and geographic targets, and written confirmation of internal clearance by both the compliance and legal departments.
Institutions are also required to provide evidence that the underlying product or service being advertised has already been approved by the CBN. The apex bank stressed that this notification process is strictly for monitoring and does not amount to prior approval or endorsement of the advert. Banks and other financial institutions will remain fully responsible for ensuring full compliance with all laws and regulations.
The regulator directed all institutions to withdraw any advert that does not comply with the standards immediately. In addition, they must, within 30 days, submit a compliance attestation jointly signed by the Managing Director or Chief Executive Officer, the Executive Compliance Officer, and the Chief Compliance Officer.
This attestation must confirm that all current advertising and promotional practices meet regulatory requirements and internal governance rules.
Sanctions to begin January 2026
The CBN announced that from January 2026, it will carry out a follow-up review to assess the level of compliance across the industry. Sanctions will be applied to any institution found violating the rules, in line with the Banks and Other Financial Institutions Act 2020 and the Consumer Protection Regulations.
The apex bank noted that it is committed to promoting fairness, transparency, and responsible marketing practices in the financial system.
