Central Bank of Nigeria Clamps Down on Misleading Bank Adverts
The Central Bank of Nigeria has ordered all banks, payment service banks and other regulated financial institutions to immediately remove any advertisements that violate consumer protection and fair marketing rules. The directive marks a significant escalation in the regulator’s efforts to clean up promotional practices across the financial sector.
The order was issued through a circular dated 27 November 2025, signed by Olubunmi Ayodele-Oni on behalf of the Director of the CBN’s Compliance Department. It follows a comprehensive industry review that exposed serious gaps in how financial institutions understand and apply disclosure, transparency, and fair marketing requirements.
CBN Review Reveals Widespread Violations in Financial Advertising
The thematic review conducted by the apex bank uncovered troubling patterns across the industry. Many institutions continue to publish adverts that exaggerate benefits, omit critical information, obscure risks or rely on unaudited financial statements to make claims.
According to the Central Bank of Nigeria, these practices not only mislead individual customers; they also undermine the integrity of the financial system. They distort market competition and undermine the integrity of Nigeria’s financial system as a whole. The regulator made clear that such behaviour will no longer be tolerated.
The violations stem from an inconsistent interpretation of two key regulatory documents: the Consumer Protection Regulations 2019 and the Guidelines on Advertisements by Deposit-Taking Financial Institutions issued in 2000. Despite these frameworks being in place for years, compliance has been patchy at best.
Central Bank of Nigeria Bans Lotteries and Prize-Based Promotions
The CBN went further than simply demanding truth in advertising. It issued an outright ban on promotional inducements such as lotteries, lucky dips, prize draws and other chance-based incentives.
The regulator’s reasoning is straightforward: these schemes can pressure consumers into making financial decisions without a full understanding of the associated risks. By dangling prizes and winnings, institutions may be nudging customers towards products that don’t actually suit their needs or circumstances.
The apex bank also prohibited comparative, superlative or de-marketing statements, whether direct or implied. This means banks can no longer claim to be “the best” or “number one” without clear, verifiable evidence. Similarly, adverts that subtly criticise competitors are now off-limits.
All adverts must be factual, balanced and transparent. There’s no room for creative interpretation of these requirements.
New CBN Compliance Framework for All Advertisements
Financial institutions now face a far more rigorous approval process before releasing any marketing material. They must submit detailed notifications to the CBN covering several key areas.
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 of internal clearance from both compliance and legal departments.
Institutions must also provide evidence that the underlying product or service being advertised has already received CBN approval. The apex bank stressed that this notification process is strictly for monitoring purposes. It does not constitute prior approval or endorsement of the advert. Banks and other financial institutions remain fully responsible for ensuring complete compliance with all laws and regulations.
This shift places the burden squarely on internal governance structures. Compliance and legal teams will need to be more involved in the creative process from the start, rather than simply rubber-stamping materials at the end.
Central Bank of Nigeria Sets 30-Day Deadline for Compliance Attestation
The CBN gave institutions clear instructions: withdraw any non-compliant advert immediately. But the directive doesn’t stop there.
Within 30 days, all institutions must submit a compliance attestation jointly signed by three senior officials: 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. It’s a personal accountability measure designed to ensure senior leadership takes these requirements seriously.
The joint signature requirement means no single executive can claim ignorance if violations are later discovered. It creates collective responsibility at the highest levels of each institution.
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Sanctions Begin January 2026 for Non-Compliant Institutions
The CBN made clear this isn’t just another circular to be filed away. From January 2026, the regulator will conduct a follow-up review to assess compliance levels across the industry.
Institutions found violating the rules will face sanctions under the Banks and Other Financial Institutions Act 2020 and the Consumer Protection Regulations. The apex bank didn’t specify what those sanctions might be, but given the seriousness of the directive, they’re likely to be significant.
The regulator emphasised its commitment to promoting fairness, transparency and responsible marketing practices in the financial system. For banks that have grown comfortable with aggressive or misleading promotional tactics, the message is clear: that era is over.
Financial institutions now have a choice. They can clean up their advertising practices voluntarily, or they can wait for the CBN to do it for them through enforcement action. The smart money is on the former.
