Nigerian Banks banned from prize draws and lottery promotions under new CBN rules
This move follows a review of marketing practices across the sector, which uncovered instances of promotions that concealed fees, exaggerated returns or omitted risks associated with products such as loans and savings accounts.
Nigeria.- The Central Bank of Nigeria has issued a directive ordering banks and other financial institutions to cease promotions and advertisements that utilise lotteries, prize draws and similar incentives to attract customers.
The order, outlined in a circular dated November 27 2025, also prohibits banks from making comparative claims that favour one institution over another or downplaying the services of competitors.
Olubunmi Ayodele-Oni, acting on behalf of the director of the Financial System Stability Compliance Department, signed the circular, emphasising that the CBN is now cracking down on marketing practices that pressure customers into making hasty decisions without full disclosure.
The directive requires banks, payment service providers and other deposit-taking institutions to remove any non-compliant advertisements immediately.
This move follows a review of marketing practices across the sector, which uncovered instances of promotions that concealed fees, exaggerated returns or omitted risks associated with products such as loans and savings accounts.
Chance-based offers, such as lucky dips or draws where customers win cash for opening accounts, fall under the ban because they can influence customers to make choices that are not in their best interests, according to the circular. It states that such schemes could pressure consumers into financial decisions without fully understanding the associated risks.
The ban on lotteries and draws affects a common tool banks have used to attract deposits. For example, Stanbic IBTC Bank ran a “Reward4Saving” programme last month that awarded 7 million naira (€4,000) in prizes to 70 customers, overseen by regulators such as the Lagos State Lotteries and Gaming Authority.
Chuma Nwokocha, CEO of Stanbic IBTC Holdings, described the programme as a way to “recognise customer efforts” at the prize draw event. Under the new rules, banks can no longer hold such events and will have to develop new strategies for engaging savers.
The CBN will conduct a sector-wide compliance review in January 2026, although officials did not specify whether this involves on-site inspections, documentation audits, or self-certification reviews. The results will inform potential enforcement actions under the 2020 Act.
Central Bank views this as a trust-building measure, especially given the rapid growth of digital banking and the corresponding increase in complaints about unclear terms.
