CBN Cracks Down on Misleading Bank Adverts: Orders Imitate Withdrawal

In a bold move to restore trust and fairness in the financial sector, the Central Bank of Nigeria is cracking down on misleading bank Adverts and has passed a sweeping directive that will require all commercial banks, payment service banks, and other financial institutions to immediately withdraw any advertisements or promotional materials that flout consumer protection and fair-marketing standards. Announced on November 27, 2025, through a circular signed by Olubunmi Ayodele-Oni, Director of the Compliance Department at the CBN, this order follows a comprehensive review of the industry, which has exposed persistent lapses in how financial players handle marketing communications.

The review, which examined practices against the Consumer Protection Regulations 2019 and the Guidelines on Advertisements by Deposit-Taking Financial Institutions 2000, found “widespread inconsistencies” in disclosure, transparency, and ethical marketing. Common red flags identified include exaggerated benefits, such as promises of sky-high returns without caveats; omitted key information, such as hidden fees or hurdles to eligibility; obscured risks, including loan defaults or investment losses; and reliance on unaudited statements of financial performance to hype performance. The CBN said these tactics do not only defraud ordinary Nigerians but also undermine the integrity of the market, promote deleterious competition, and expose vulnerable consumers-especially in a period of burgeoning digital banking and fintech-to unsavory financial choices.

To enforce stricter accountability, the regulator has rolled out a zero-tolerance framework:

• Prohibited Practices: No more comparative or “de-marketing” claims, such as “We’re better than the rest!”; superlatives suggesting superiority; or chance-based inducements, such as lotteries, prize draws, and lucky dips. These are manipulative pressure practices that prompt users to make quick decisions without realizing the disadvantages.
  Pre-Approval Protocol: Before executing any advertisement, institutions are required to pre-inform the CBN, furnishing information such as duration, creative content, target audience, geographic reach, and proof of internal vetting by legal/compliance teams. They should also provide evidence that the product or service being promoted is fully approved by the CBN.
• Compliance Deadline: Through a signed attestation by top executives (MD/CEO, Executive Compliance Officer, and Chief Compliance Officer), banks are required to confirm full compliance within 30 days. By January 2026, CBN will start conducting follow-up audits, and heavy penalties, including fines, product suspensions, or reputational damage resulting from such security incidents, will be imposed in accordance with the Banks and Other Financial Institutions Act (BOFIA) 2020

Direct response to the rapid digitization of finance in Nigeria

This is not just regulatory housekeeping; this is a direct response to the rapid digitization of finance in Nigeria, where online ads and social media promos can spread like wildfire, often preying on low financial literacy. By prioritizing “factual, balanced, and transparent” messaging, the CBN wants consumers to make informed choices: verify claims through official channels, read the fine print regarding costs and risks, and avoid “too-good-to-be-true” offers.

For banks like Access, UBA, Zenith, and Ecobank, this means a quick audit of ongoing campaigns and a pivot towards ethical storytelling that can build long-term trust rather than short-term hype. This, as Governor Yemi Cardoso’s team doubles down on stability amid economic headwinds, underlines the core truth: it is honesty, not illusions, upon which healthy financial systems thrive. What do you think—does this clean up ad clutter, or is this where more action is needed? Drop your takes below.