Central Bank of Nigeria CBN has directed all banks, payment service banks, and other regulated financial institutions to immediately withdraw any advertisements or promotional materials that do not comply with approved 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 Compliance Department.
It followed a thematic industry review which uncovered widespread inconsistencies in how financial institutions interpret disclosure, transparency, and fair marketing obligations under the Consumer Protection Regulations 2019 and the 2000 Guidelines on Advertisements by Deposit Taking Financial Institutions.
According to the apex bank, the review revealed that several institutions still publish advertisements that exaggerate benefits, omit vital information, conceal risks, or are based on unaudited financial statements.
The CBN warned that such practices mislead customers, distort competition within the market, and weaken the integrity of the financial system.
Emphasising that all advertisements must be factual, balanced, and transparent, the regulator stated that comparative, superlative, or demarketing statements whether explicit or implied are strictly prohibited.
The bank also banned promotional inducements such as lotteries, lucky dips, prize draws, and other chance-based incentives, noting that such schemes may pressure consumers into making financial decisions without a full understanding of the associated risks.
