The Central Bank of Nigeria (CBN) has issued a strict directive to banks and financial institutions, demanding the immediate withdrawal of any advertisements that fail to meet regulatory standards. This move comes as a response to a comprehensive review that exposed misleading and non-transparent marketing practices across the sector. The review uncovered ads that exaggerated benefits, obscured risks, or omitted crucial information required by the Consumer Protection Regulations 2019 and the Guidelines on Advertisements by Deposit-Taking Institutions. The CBN's circular, dated November 27th, emphasizes the need for all advertisements to be factual, balanced, and transparent. Institutions are now required to notify the CBN before publishing any marketing material, providing details such as timelines, target audience, creative content, and internal compliance clearance. This notification is strictly for monitoring purposes and does not constitute approval or endorsement by the CBN. To ensure compliance, institutions have been given a 30-day deadline to submit a compliance attestation, jointly signed by their chief executive and senior compliance officers. The CBN will conduct a follow-up review in January 2026 and apply sanctions for any breaches under the BOFIA 2020. This directive is a significant step towards enhancing transparency and market integrity in the financial sector, especially in light of the recent surge in customer complaints and concerns regarding aggressive digital marketing practices by banks and fintechs.
