The Central Bank of Nigeria (CBN) has ordered all commercial, merchant, and payment-service banks to immediately withdraw any misleading, exaggerated, or non-compliant advertisements, following a rising number of promotional materials that the regulator says could distort customer expectations and undermine market integrity.
In a fresh compliance directive, the apex bank faulted several ongoing campaigns that push incomplete information on interest rates, loan conditions, investment benefits, or digital-service offerings.
According to the CBN, a portion of these adverts present “unverified claims, unrealistic guarantees, or selectively disclosed terms” all of which violate consumer-protection rules under the Bank’s regulatory framework.
The CBN noted that all banks must ensure that every promotional message clearly spells out the true cost of services, applicable charges, eligibility conditions, and any associated risks.
The regulator stressed that omission of essential information such as loan penalty rates, investment capital risks, or limitations on product access qualifies as misleading and will not be tolerated.
The directive comes amid increasing competition across the banking sector, particularly between traditional lenders, digital-only banks, and fintechs.
Industry analysts say aggressive marketing campaigns have pushed some institutions to oversell product capabilities or understate obligations in a bid to attract new customers.
Sanctions looming for violators
The apex bank warned that failure to withdraw or correct misleading adverts will attract regulatory penalties, including monetary sanctions, withdrawal of affected products, and reputational consequences.
Banks are also required to submit evidence of compliance and ensure that future adverts undergo internal regulatory vetting before publication.
The CBN added that the directive is part of efforts to rebuild consumer confidence at a time when digital adoption, online payments, and alternative lending platforms are expanding rapidly.
The regulator emphasised that transparency in public communication is critical to protecting vulnerable consumers and ensuring fair competition.
Customers have been encouraged to verify financial claims directly from official bank channels and to be cautious of adverts that promise unusually high returns or downplay important terms and conditions.