The Central Bank of Nigeria (CBN) has introduced a revised consumer protection framework, compelling financial service providers (FSPs) to adhere to minimum standards in their advertising and promotional materials.

Among the stipulations is a prohibition on referencing unaudited financial statements in sales promotions.

Unaudited financial statements are financial reports that lack verification by an external independent auditor for accuracy and completeness.

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Additionally, FSPs are required to disclose contact details, regulatory authority, product costs, including all associated fees and charges, and the nature and value of benefits, if mentioned in advertisements.

The framework also prohibits mentioning competitors’ names or making comparisons.

The CBN emphasized that advertisements must be factual, clear, and devoid of offensive, misleading, or deceptive content likely to cause harm.

Unsolicited advertisements should be provided to consumers free of charge.

Furthermore, service providers must fulfill their obligations as advertised, refrain from making promotional material opt-ins a prerequisite for consumer onboarding, and periodically assess the competence and conduct of their employees.

The banking landscape has experienced significant transformation due to evolving market trends and the widespread adoption of technology in delivering financial products and services through digital channels.

While these changes offer enhanced consumer choices and convenience, they also expose consumers to new challenges and risks.

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The revised framework aims to foster a safe, trustworthy, and consumer-friendly financial services environment by promoting transparency, disclosure, and the provision of accurate information to consumers in a timely manner.

It also seeks to safeguard consumers from unethical and predatory practices that erode confidence in the use of financial products and services, as stated by the CBN.