CBN Cracks Down: Banks Ordered To Remove Misleading Promotions Immediately

The Central Bank of Nigeria (CBN) has ordered all licensed banks, payment service banks, and other regulated financial institutions to immediately withdraw any advertisements or promotional materials that violate transparency and consumer-protection standards.....KINDLY READ THE FULL STORY HERE▶

The directive, issued on Thursday via an industry circular and signed by Olubunmi Ayodele-Oni from the CBN’s Compliance Department, follows an industry review which revealed persistent breaches of advertising and disclosure rules. These breaches were measured against the Consumer Protection Regulations 2019 and the Advertising Guidelines for Deposit-Taking Institutions 2000.

The CBN highlighted that some institutions exaggerated product benefits, obscured risk disclosures, or used unaudited financial statements to market their products. Such practices, the regulator noted, mislead consumers, distort competition, and undermine public trust in the financial system.

The circular specifies that all adverts—digital or traditional—must be factual, balanced, and transparent. It prohibits comparative claims, exaggerated superlatives, de-marketing statements, and chance-based promotional inducements such as lotteries, prize draws, or lucky dips, which may pressure consumers into financial commitments without understanding the risks.

Institutions are now required to submit advert-notification filings to the CBN before any campaign release. These filings must include the advert’s duration, creative content, target audience, geographical exposure, and confirmation that the advertised product has received regulatory clearance. Additionally, institutions must provide internal governance confirmation from their legal and compliance departments. The CBN clarified that this notification process does not constitute prior approval, and institutions remain responsible for ensuring compliance with all advertising and consumer-protection laws.

The regulator also mandated that compliance attestation letters be submitted, co-signed by the Managing Director or CEO, Executive Compliance Officer, and Chief Compliance Officer, confirming adherence to consumer-disclosure obligations, regulatory governance standards, and national advertising laws.

Naija News reports that non-compliant institutions will face sanctions starting January 2026, alongside a follow-up audit and compliance review. Enforcement will align with the Banks and Other Financial Institutions Act 2020 and the CBN’s regulatory sanction framework.

The CBN reaffirmed its commitment to fairness, responsibility, and transparent communication to protect consumers in Nigeria’s financial sector.