Central Bank Moves Against Deceptive Marketing by Nigerian Banks

From Marcus Nkire

The Central Bank of Nigeria (CBN) has issued a sweeping directive ordering banks, payment-service institutions and other licensed financial operators to immediately take down any advertisements that could mislead customers or breach existing consumer-protection rules.

The directive follows a regulatory review that uncovered a pattern of marketing practices the apex bank described as “non-transparent” and potentially harmful to consumers. According to the CBN, several ongoing campaigns exaggerate product benefits, conceal critical terms, or promote financial services without proper disclosure of associated risks.

The apex bank warned that such practices erode trust in the financial sector and create unfair competition among institutions.

Under the new compliance requirements, banks and other regulated entities must now conduct stricter internal checks before publishing adverts or promotional materials. They are prohibited from using claims that compare them to competitors or imply superiority that cannot be independently verified. Promotional tactics such as prize draws, lucky dips and other inducements have also been restricted.

In addition, the CBN has directed institutions to file a formal compliance attestation signed by their chief executive, head of compliance and legal adviser within 30 days. This document must confirm that all ongoing and future advertisements meet regulatory and ethical standards.

The CBN further disclosed that from January 2026, it will commence sector-wide monitoring to ensure full adherence. Institutions that fail to comply risk sanctions under the Banks and Other Financial Institutions Act and the Consumer Protection Regulations.

The new measures form part of the CBN’s broader effort to strengthen market discipline, enhance consumer confidence and ensure that customers receive clear, factual and responsible information about financial products and services.