The Central Bank of Nigeria (CBN) has directed all banks, payment service banks, and other regulated financial institutions to immediately withdraw any advertisement or promotional material that violates consumer-protection and fair-marketing standards.

The directive was issued in a circular released on Thursday and signed by Olubunmi Ayodele-Oni on behalf of the Director of the CBN’s Compliance Department.

According to the circular, a recent industry-wide review revealed widespread inconsistencies in how financial institutions interpret disclosure, transparency and fair-marketing requirements under the Consumer Protection Regulations 2019 and the 2000 Guidelines on Advertisements by Deposit-Taking Institutions.

The apex bank noted that several institutions continue to publish adverts that exaggerate benefits, conceal important information, distort risks, or rely on unaudited financial data. It warned that such practices mislead consumers, distort fair competition, and erode confidence in the financial system.

The CBN reaffirmed that all marketing communications must be factual, clear, balanced, and transparent, adding that any form of comparative, superlative or de-marketing statements — whether direct or implied — is prohibited.

It also banned promotional incentives such as lotteries, prize draws, lucky dips, and other chance-based inducements, saying they may push consumers into financial decisions without fully understanding the associated risks.

Stricter Compliance Requirements Introduced

Under the new guidelines, financial institutions must now notify the CBN before releasing any advert or promotional content. The notification must include:

• Duration of the advert

• Creative content to be aired or published

• Intended demographic and geographic targets

• Written confirmation of clearance by internal legal and compliance units

• Evidence that the product or service being advertised has been approved by the CBN

However, the bank clarified that this notification process does not serve as approval or endorsement; institutions remain fully responsible for ensuring regulatory compliance.

The CBN also ordered banks and financial institutions to immediately withdraw any advert that fails to meet the required standards. Within 30 days, they must submit a compliance attestation jointly signed by the Managing Director/CEO, Executive Compliance Officer and Chief Compliance Officer.

A follow-up industry-wide review will begin in January 2026, and the CBN warned that sanctions will be applied to institutions that violate the rules in line with the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Consumer Protection Regulations.

The apex bank reiterated its commitment to promoting fairness, transparency and responsible marketing in Nigeria’s financial system.

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The Central Bank of Nigeria (CBN) has introduced a new directive requiring all Domestic Systemically Important Banks (DSIBs) to publicly announce the appointment of a new Managing Director/Chief Executive Officer (MD/CEO) at least three months before the departure of the incumbent.

In addition, the apex bank mandated that regulatory approval for the appointment of a successor must be secured no later than six months before the current chief executive’s tenure expires.

According to the CBN, the policy is designed to guarantee seamless leadership transitions, minimise disruptions in bank management, and mitigate risks associated with sudden changes at the top.

“This requirement is aimed at minimising disruptions at the top management level, enabling appointees to adequately prepare for their new roles, and reducing risks tied to abrupt leadership changes,” the regulator said.

The directive was contained in a circular issued to DSIBs and signed by Rita I. Sike, Director of the Financial Policy & Regulation Department of the CBN.

Citing Section 2.14 of the 2023 Corporate Governance Guidelines for Commercial, Merchant, Non-Interest and Payment Service Banks, the circular stressed the importance of robust succession planning. The guidelines require boards of these institutions to approve succession plans for MD/CEOs, Executive Directors (EDs), and senior management personnel.

“In view of the critical role DSIBs play in maintaining financial system stability, the CBN reiterates the importance of effective succession planning in these institutions,” the circular stated.

The apex bank added that DSIBs must (1) secure regulatory approval for a successor MD/CEO no later than six months before the outgoing chief’s tenure lapses and (2) make the appointment public at least three months before the transition.

“You are hereby directed to ensure strict compliance with the above directives,” the CBN warned.

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