•Central Bank of Nigeria
The Central Bank of Nigeria (CBN) has launched a sweeping crackdown on misleading marketing practices in the financial sector, directing all banks, payment service banks, and other regulated institutions to immediately withdraw any advertisement that violates consumer-protection and fair-marketing standards.
The directive, issued in a circular dated and signed by Olubunmi Ayodele-Oni for the Director of the CBN’s Compliance Department, follows a detailed thematic industry review that exposed widespread abuses in how institutions communicate financial products to the public, reports Daily Independent.
According to the apex bank, the review showed that many adverts currently in circulation exaggerate benefits, omit critical information, obscure inherent risks, or even rely on unaudited financial statements — practices the CBN described as misleading, anti-competitive, and harmful to market integrity.
The regulator stressed that such distortions not only deceive consumers but also create an uneven playing field and erode confidence in Nigeria’s financial system.
The CBN reminded financial institutions that all forms of advertising must be factual, clear, balanced, and transparent, in line with the Consumer Protection Regulations 2019 and the longstanding Guidelines on Advertisements by Deposit-Taking Financial Institutions issued in 2000.
It specifically prohibited comparative, superlative, or de-marketing claims —whether direct or indirect —warning that such tactics misrepresent value and promote unfair competition.
Also banned are promotional schemes such as lotteries, prize draws, lucky dips, and other chance-based inducements that could pressure consumers into hasty or ill-informed financial commitments.
According to the circular, such incentives often distract from underlying product risks and can manipulate vulnerable customers into making choices they do not fully understand.
As part of a strengthened compliance framework, banks and other regulated institutions must now provide the CBN with formal notifications before releasing any advertisement or marketing content.
The notification must include details such as the duration of the campaign, the creative materials to be aired or published, target audience demographics, geographic focus, and written proof that both the compliance and legal departments have vetted and approved the material.
Institutions must also submit evidence that the product or service being advertised has already received approval from the CBN.
However, the central bank emphasised that this notification process should not be misconstrued as prior approval or endorsement of the advert. Responsibility for full compliance will continue to rest squarely with the advertising institution.
In a strong warning to the industry, the CBN ordered all banks and other regulated entities to immediately withdraw any existing advert that fails to comply with the stipulated standards.
Furthermore, every institution must, within 30 days, submit a detailed compliance attestation. This document is required to be jointly signed by the Managing Director or Chief Executive Officer, the Executive Compliance Officer, and the Chief Compliance Officer — an indication of the seriousness with which the regulator expects institutions to treat the new directive.
Industry operatives say the crackdown reflects the CBN’s heightened focus on consumer protection, transparency, and ethical conduct amid rising competition across banking, fintech, and digital payments.
Recent years have seen a surge in aggressive marketing, particularly in the digital space, where some lenders and payment platforms have been accused of making exaggerated claims about interest rates, loan approvals, transaction speeds, and investment returns.
Analysts note that as new entrants vie for market share, some have resorted to tactics that undermine disclosure obligations and expose consumers to hidden costs or unrealistic promises.
By tightening advertising controls and reinforcing accountability at the executive level, the CBN aims to restore discipline to the marketplace and protect consumers from deceptive promotions that could influence risky financial decisions.
The Central Bank’s insistence on evidence of product approval also seeks to curb the growing trend of institutions marketing unapproved or unverified offerings, especially in investment-linked services.
Compliance experts say the new rules could significantly reshape how banks and fintechs communicate with customers, forcing a shift from flashy, incentive-driven campaigns to more sober, fully transparent messaging.
Marketing departments, they warn, will now be under pressure to ensure that every claim is verifiable, every disclosure complete, and every promotion vetted for regulatory consistency before it reaches the public.
For Nigeria’s financial institutions, the message from the CBN is unmistakable: the era of aggressive, loosely regulated advertising is over.
With the threat of regulatory sanctions looming, institutions must now align their marketing strategies with stringent consumer-protection requirements or face consequences that could range from withdrawal of materials to more severe compliance penalties.
As the compliance clock begins to tick, industry stakeholders are expected to commence internal reviews of all existing and upcoming campaigns to avoid breaches.
The coming weeks will likely determine how quickly the sector adjusts to a stricter, more disciplined era of financial advertising—one designed to protect consumers, promote fair competition, and uphold the integrity of Nigeria’s financial marketplace.
