The Central Bank of Nigeria (CBN) has instructed all banks, payment service banks and other regulated financial institutions to immediately halt any advertisement or promotional campaign that violates transparency or consumer-protection rules.
The directive, contained in a circular released on Thursday and signed by Olubunmi Ayodele-Oni of the CBN’s Compliance Department, followed a sweeping industry review conducted by the apex bank.
According to the CBN, the review—guided by the Consumer Protection Regulations (2019) and the Advertising Guidelines for Deposit-Taking Institutions (2000)—uncovered widespread breaches in how financial products are marketed to the public.
The regulator said many institutions were found publishing misleading content, including exaggerated product claims, poorly disclosed risk warnings, unclear or obscured information, and promotional messages tied to unaudited financial reports.
The CBN warned that such practices distort market competition, mislead customers, and damage public trust in the financial system. It stressed that every advert—whether online, broadcast, or offline—must be factual, balanced, transparent and easy for consumers to understand.
Ban on Comparative Claims and Chance-Based Promotions
The circular also placed a firm ban on marketing materials that include comparative claims, superlative statements, or messages that could be interpreted as de-marketing rivals. In addition, institutions were prohibited from running promotional schemes dependent on chance—such as lotteries, prize draws, lucky dips and similar engagement formats. The CBN said these tactics can pressure consumers into financial decisions without fully understanding the associated risks.
Mandatory Pre-Release Notification to CBN
In a major shift, the regulator mandated that all institutions must now submit an advert-notification filing before launching any marketing campaign. Though not an approval process, the notification must include:
* Planned duration of the advert
* Full creative materials intended for publication
* Defined target audience segments
* Geographic coverage
* Documented evidence of product approval from the CBN’s product-approval committee
* Confirmations from internal legal and compliance units validating marketing clearance
The apex bank clarified that the CBN will not pre-approve adverts but will use the notification filings for oversight, risk-communication alignment and governance monitoring.
Strict Compliance Attestation Required
Financial institutions are also required to submit a compliance attestation letter, jointly signed by the Managing Director/CEO, Executive Compliance Officer and Chief Compliance Officer.
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The letter must confirm that the institution’s advertising practices comply with national consumer-protection standards, internal controls and regulatory guidelines.
Sanctions Begin 2026
The CBN cautioned that sanctions for violations will take effect from January 2026, adding that a comprehensive industry audit—covering communication practices and compliance levels—will begin the same month.
Penalties, it noted, will be enforced under the Banks and Other Financial Institutions Act (2020) and aligned with the CBN’s sanctioning framework.
Reaffirming its commitment to safeguarding consumers, the apex bank said it would continue to promote fairness, responsibility and transparent communication in Nigeria’s financial sector.
