CBN Orders Banks to Withdraw Misleading Ads

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

The directive was issued in a circular released on Thursday and signed by Olubunmi Ayodele-Oni on behalf of the Director of the CBN’s Compliance Department. According to the apex bank, the order followed a thematic industry review which uncovered widespread variations in how institutions interpret the disclosure, transparency and fair-marketing requirements outlined in the Consumer Protection Regulations 2019 and the 2000 Guidelines on Advertisements by Deposit-Taking Financial Institutions.

The review revealed that several institutions had published adverts that exaggerated benefits, omitted key information, obscured risks or relied on unaudited financial statements. The CBN warned that such practices mislead customers, distort competition and undermine the integrity of the financial system.

It emphasised that all adverts must be factual, balanced and transparent, noting that comparative, superlative or de-marketing statements—whether direct or implied—are strictly prohibited. The regulator also banned the use of promotional inducements such as lotteries, prize draws, lucky dips and other chance-based incentives, saying such schemes could pressure consumers into financial commitments without fully understanding the risks involved.

Under the tightened compliance framework, financial institutions are now required to notify the CBN before releasing any advertisement. The notification must include the duration of the advert, the creative content to be aired or published, the intended demographic and geographic targets, and written confirmation that the institution’s legal and compliance departments have cleared the material. Institutions must also provide evidence that the underlying product or service being advertised has already received CBN approval.

The apex bank stressed that the notification process is solely for monitoring and does not amount to regulatory approval or endorsement of the advert. It maintained that institutions remain fully responsible for ensuring compliance before publishing any promotional material.

The CBN directed all banks and other financial institutions to withdraw any non-compliant advertisement immediately and, 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. The attestation must confirm that all current advertising and promotional practices align with regulatory requirements and internal governance rules.

The regulator added that beginning January 2026, it will conduct a follow-up review across the industry, warning that sanctions will be imposed on institutions found violating the rules in line with the Banks and Other Financial Institutions Act 2020 and the Consumer Protection Regulations.

The CBN said the strengthened advertising controls are part of its broader effort to promote fairness, transparency and responsible marketing practices in the financial system.