CBN tightens bank advertisement rules, banning misleading claims and prize-based promotions to ensure transparency and consumer protection

The Central Bank of Nigeria has introduced stricter rules for advertisements by deposit-taking financial institutions, warning that misleading claims and promotional inducements undermine market integrity and consumer trust.

Also read: Major Boost as Dangote Fertiliser Expansion Gains Global Partners

The announcement was made in a statement issued by the apex bank on Thursday.

The CBN highlighted that many adverts continue to exaggerate benefits, omit key information, obscure risks, or rely on unaudited financial statements.

The regulator emphasised that all promotional content must be factual, balanced, and transparent, prohibiting comparative, superlative, or de-marketing statements, whether direct or implied.

The new framework also bans lotteries, lucky dips, prize draws, and other chance-based incentives, cautioning that such schemes may pressure consumers into financial decisions without understanding the risks.

Financial institutions must now submit detailed notifications to the CBN before releasing any advert or marketing material.

These notifications must outline the advert’s duration, content, target audience, and internal clearance confirmation from compliance and legal departments.

The apex bank clarified that notification does not constitute prior approval, stressing that institutions remain responsible for compliance with all regulations.

Banks and other financial institutions must immediately withdraw any non-compliant adverts and submit a compliance attestation within 30 days, co-signed by the Managing Director or CEO, Executive Compliance Officer, and Chief Compliance Officer.

From January 2026, the CBN will conduct follow-up reviews across the industry to assess adherence.

Sanctions will apply to any institution found violating the rules, in line with the Banks and Other Financial Institutions Act 2020 and the Consumer Protection Regulations.

Also read: Major Boost as Dangote Fertiliser Expansion Gains Global Partners

The central bank reiterated its commitment to fairness, transparency, and responsible marketing practices, aiming to protect consumers while maintaining integrity within Nigeria’s financial system.