CBN Directs Banks, Others To Withdraw Non-Compliant Advertisements

The Central Bank of Nigeria (CBN) has ordered Deposit Money Banks (DMBs), Payment Service Banks (PSBs), and other financial institutions to immediately withdraw all advertisements and promotional materials that fail to comply with existing regulations.

The directive, issued via a circular posted on the CBN website on Thursday, also requires institutions to submit a compliance attestation within 30 days.

The attestation must be jointly signed by the Managing Director/Chief Executive Officer, Executive Compliance Officer, and Chief Compliance Officer, confirming that all current advertising and promotional practices adhere to applicable laws, regulations, and internal governance processes.

The apex bank warned that, beginning January 2026, it will conduct follow-up reviews and impose sanctions for any breaches, in accordance with the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Consumer Protection Regulations.

According to the CBN, the directive follows a thematic review of advertising and promotional practices across the industry, which revealed inconsistencies in how institutions interpret and apply the disclosure, transparency, and fair-marketing requirements of the Consumer Protection Regulations (2019) and the Guidelines on Advertisements by Deposit-Taking Financial Institutions (2000).

The circular clarified that all advertisements must be factual, balanced, and transparent. Claims that could mislead, obscure risks, or create unfair comparisons are prohibited. Institutions are also barred from exaggerating benefits, omitting material information, or referencing unaudited financial statements.

Additionally, the CBN stated that comparative, superlative, or de-marketing statements, whether direct or implied are not permitted. Promotions that constitute inducements, such as lotteries, prize draws, lucky dips, or other chance-based incentives, are also prohibited.

The regulator emphasised that institutions remain fully responsible for ensuring advertising compliance before submission and publication.