CBN Cracks Down On Misleading Bank Ads, Orders Immediate Withdrawal

The Central Bank of Nigeria (CBN) has instructed all licensed banks, payment service banks, and other regulated financial institutions to immediately withdraw any ongoing advertisements or promotional campaigns that violate transparency and consumer-protection standards.

The directive, issued through an industry circular on Thursday and signed by Olubunmi Ayodele-Oni of the CBN’s Compliance Department, follows an industry-wide review that highlighted persistent breaches of the Consumer Protection Regulations 2019 and the Advertising Guidelines for Deposit-Taking Institutions 2000.

According to the CBN, several financial institutions have been promoting products using exaggerated claims, obscured risk disclosures, or unaudited financial statements. Such practices, the regulator noted, mislead consumers, undermine market competition, and erode trust in the financial system.

The circular requires all advertisements, whether digital or traditional, to be factual, balanced, and transparent. It prohibits comparative claims, exaggerated superlatives, de-marketing statements, and chance-based promotional schemes such as lotteries, prize draws, or lucky dips, which could pressure consumers into financial commitments without understanding associated risks.

Financial institutions are now mandated to submit detailed advert-notification filings to the CBN prior to launching any marketing campaigns. The submissions must include creative content, duration of the campaign, target audience, geographical reach, and evidence of regulatory approval for the advertised product. Additionally, firms must provide signed internal governance confirmation from their legal and compliance departments.

The CBN clarified that the notification process does not constitute prior approval of advertisements, with institutions remaining fully responsible for compliance with national advertising and consumer-protection laws. Companies must also submit compliance attestation letters co-signed by senior executives, confirming adherence to regulatory and internal compliance frameworks.

The regulator warned that non-compliant institutions will face sanctions starting January 2026. A follow-up audit and compliance assessment across the sector will also commence in January to ensure strict adherence to regulations. The enforcement provisions will align with the Banks and Other Financial Institutions Act 2020 and the CBN’s sanctioning framework.

The central bank reiterated its commitment to transparency, fairness, and responsible consumer communication within the Nigerian financial sector.