CBN Orders Banks To Withdraw Misleading Adverts To Protect Consumers

• The CBN has ordered all banks and regulated financial institutions to immediately withdraw misleading adverts
• Institutions must now submit detailed notifications of all adverts to the CBN and provide compliance attestations within 30 days.
• From January 2026, the CBN will conduct a follow-up review and apply sanctions to any institution found in violation of the rules

Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The 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 violate consumer protection and fair-marketing standards.

The directive, contained in a circular issued on Thursday and signed by Olubunmi Ayodele-Oni on behalf of the Director of the CBN’s Compliance Department, follows a thematic industry review.

CBN moves to protect bank customers

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The review found widespread inconsistencies in how 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.

To promote transparency, strengthen market integrity, and ensure consumers receive accurate information, the CBN issued the following clarifications:

• All adverts must be factual, balanced, and transparent; misleading claims, risk omissions, or unfair comparisons are prohibited.
• Institutions must not exaggerate benefits, omit critical information, or reference unaudited financial statements.
• Comparative, superlative, or de-marketing statements, whether direct or implied, are banned.
• Promotional inducements, including lotteries, prize draws, lucky dips, and other chance-based incentives, are not allowed.

New instruction for banks

Under the new framework, financial institutions are required to notify the CBN before releasing any advertisement, Punch reports.

Notifications must include the advert’s duration, creative content, target audience, internal compliance clearance, and evidence that the product or service has CBN approval.

The apex bank emphasised that this notification is strictly for monitoring and does not constitute approval or endorsement.

All institutions remain fully responsible for ensuring compliance before publication.

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To facilitate industry-wide alignment, the CBN has also instructed institutions to immediately withdraw non-compliant adverts and, within 30 days, submit a compliance attestation jointly signed by the Managing Director/CEO, Executive Compliance Officer, and Chief Compliance Officer.

The attestation must confirm that all advertising practices comply with laws, regulations, and internal governance policies.

Starting January 2026, the CBN will conduct a follow-up review to assess compliance and impose sanctions for violations under the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Consumer Protection Regulations.

CBN confirms 16 banks meet recapitalisation target

Earlier, Legit.ng reported that the Central Bank of Nigeria (CBN) has announced that 16 banks have fully met the recapitalisation.

Cardoso also revealed that another 27 banks are in the process of raising capital.

He noted that the CBN is closely monitoring developments to ensure the exercise stays on track and strengthens the financial sector.

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The apex bank urged lenders to continue implementing policies and initiatives that will drive the successful completion of the recapitalisation process.

Source: Legit.ng