The Central Bank of Nigeria (CBN) has ordered Nigerian banks, Payment Service Banks (PSBs), and other financial institutions to withdraw all misleading advertisements that violate consumer-protection rules.
This directive was contained in a circular signed by CBN’s director of compliance department, Olubunmi Ayodele-Oni, stating that this development was a result of a review of the industry.
The apex bank stated that the review indicated that several financial institutions continuously publicize adverts that exclude key information, exaggerate benefits, hide risks, etc.
CBN noted that such practices can mislead customers, distort market competition, and also compromise the integrity of the financial system, adding that all advertisements must be factual and transparent.
The circular reads in part, “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.”
CBN directed all financial institutions to immediately withdraw all misleading adverts that do not comply with standards, adding that they must submit a compliance attestation jointly signed by the Managing Director or Chief Executive Officer, the Executive Compliance Officer, and the Chief Compliance Officer within 30 days.
The circular further stated, “This attestation must confirm that all current advertising and promotional practices meet regulatory requirements and internal governance rules.
“Sanctions will be applied to any institution found violating the rules, in line with the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Consumer Protection Regulations.”
The apex bank reiterated its dedication to “promote transparency, fairness, and responsible marketing practices in the country’s financial sector,” adding that it would conduct a follow-up review from January 2026 to assess the level of compliance.
