Nigeria’s Central Bank bans use of lottery and prize-draw incentives in financial marketing

The Central Bank of Nigeria has issued a formal directive ordering all financial institutions to immediately discontinue advertisements that use lotteries, prize draws or similar incentives, citing consumer-protection concerns.

The Central Bank of Nigeria (CBN) has introduced a significant restriction on how banks and other financial institutions promote their services. In a new circular released by the Financial System Stability (FSS) Compliance Department, the regulator has prohibited the use of lottery-style promotions, prize draws, raffles or any similar incentive-based marketing in customer-facing advertisements.

According to the circular, financial institutions must remove all ongoing campaigns immediately, regardless of format — including digital ads, in-branch promotions, SMS marketing and social-media engagement initiatives.

The CBN stated that these incentives can pressure or mislead customers into making hasty financial decisions, especially when tied to account openings, deposits or the use of specific banking products. The directive aligns with the bank’s broader consumer-protection framework, which aims to ensure transparency, responsible marketing and the fair treatment of customers across the financial system.

Industry observers note that the decision will likely reshape retail-banking strategies in Nigeria, where raffle-based promotions have been widely used for years to attract deposits and new customers. Banks are now required to adjust their marketing approaches to comply with stricter standards, with the CBN emphasising that non-compliance may result in regulatory sanctions.

The move is expected to strengthen consumer trust and reduce marketing practices that could create unrealistic expectations or exploit financially vulnerable individuals.