CBN Orders Withdrawal of Non-Compliant Advertisements Across Financial Institutions

The Central Bank of Nigeria (CBN) has directed banks, payment service banks, and other financial institutions to immediately withdraw all advertisements that violate established regulatory standards. The directive follows a sector-wide review which revealed widespread inconsistencies in how institutions interpret consumer-protection and fair-marketing rules.

The Central Bank of Nigeria Flags Irregularities in Industry Advertising

CBN said a thematic assessment of advertising and promotional practices across the financial sector exposed significant variations in compliance. According to a letter issued on Thursday and signed by Olubunmi Ayodele-Oni, Director of the Compliance Department, many institutions did not fully adhere to disclosure, transparency, and fair-marketing requirements as stated in the Consumer Protection Regulations (2019).

The withdrawal of non-compliant advertisements begins as the apex bank expresses concern that some promotional materials may mislead customers or obscure essential information about services and products. The bank emphasised that the inconsistencies undermine consumer rights, fair competition, and trust in the financial system. Institutions were reminded that regulatory guidelines exist to ensure clarity, accuracy, and fairness in all public communication targeted at consumers.

Withdrawal of Non-Compliant Advertisements Begins With a Compliance Mandate for All Operators

In its directive, the Central Bank of Nigeria stressed that all deposit-taking institutions are required to align with the Guidelines on Advertisements by Deposit-Taking Financial Institutions (2000). The guidelines mandate full disclosure of terms, risks, fees, and performance claims. The regulator noted that deviations from these standards were observed across multiple categories of institutions, including traditional banks, payment service banks, and other regulated operators.

The withdrawal of non-compliant advertisements begins as the CBN reaffirms that inducements, misleading promotions, or incomplete disclosures are expressly prohibited. Operators were advised to review all ongoing and planned promotional content to ensure compliance. The bank added that strict enforcement measures, including sanctions, may follow if institutions fail to meet the directive within the expected timeframe.

The Central Bank of Nigeria Seeks Stronger Consumer Protection Practices

According to the CBN, the latest directive is part of broader efforts to strengthen consumer protection and deepen public confidence in the financial sector. The bank said transparent advertising practices are essential to ensuring that customers fully understand the services they engage with, particularly in a rapidly evolving digital financial landscape.

The withdrawal of non-compliant advertisements begins alongside renewed calls for institutions to adopt internal controls that ensure compliance at every stage of advertising — from concept and design to publication. The regulator encouraged financial institutions to train staff, strengthen oversight, and embed consumer-protection principles across their operations. By promoting fairness and accuracy, the CBN said, the industry can build long-term trust and uphold global standards.