The Central Bank of Nigeria (CBN) has, in an amended consumer protection framework, mandated financial service providers to meet minimal criteria in their advertising and promotional materials.
One of the criteria is that FSPs must not allude to unaudited financial figures in their sales promotions.
Unaudited financial statements are those that have not been reviewed and confirmed for correctness and completeness by an independent auditor.
Other requirements include disclosing contact information and its regulatory authority; disclosing product costs, including all fees and other associated charges; disclosing the nature and value of benefits, where an advertisement refers to or is linked to other value-adding benefits; and refraining from mentioning or comparing competitors’ names.
CBN noted that “the content of advertisements shall be factual, unambiguous, not offensive, misleading, deceptive, or likely to cause damage.
The document stated, “Promotional materials must not focus on benefits and downplay risks, unsolicited advertisements should be free for consumers.
“The service providers must honour obligations in sales promotions as advertised and offered; not make opt-in for promotional materials a prerequisite for onboarding consumers to products.
“They must stablish a process to periodically evaluate the competence and conduct of employees.
“The financial services industry has undergone significant transformation with evolving market trends, proliferation and widespread adoption of technology in the delivery of a broad range of financial products and services through digital channels.”
The CBN stated that although these developments improved consumer options, convenience, and accessibility, they also exposed customers to new problems and hazards.
The apex bank went on to say that the updated document aims to foster a secure, trustworthy, and consumer-friendly financial services environment by encouraging openness and disclosure through the timely transmission of accurate and clear information to customers.
The CBN further stated that it protects customers from unethical and unscrupulous actions that erode trust in financial goods and services.
