Banks spent N76.5bn on marketing in Q1 2026, despite CBN ad crackdown

Nigeria's deposit money banks spent N76.54bn on advertising, promotions and corporate gifts in the first quarter of 2026, up 5.35 per cent from N72.65bn in the same period of 2025. The increase came even as the Central Bank of Nigeria tightened rules around bank advertising.

Marketing spend rises

An analysis of the unaudited financial statements of 11 banks showed that marketing expenditure rose by N3.89bn year-on-year. The average marketing spend per bank climbed to N6.96bn in Q1 2026 from N6.60bn in Q1 2025, a 5.35 per cent increase or 1.05 times the previous year's average.

United Bank for Africa recorded the biggest marketing expenditure, spending N15.68bn, up from N5.65bn in Q1 2025, a 177.69 per cent increase. Fidelity Bank followed with N26.19bn, despite a 3.86 per cent decline from N27.24bn. First HoldCo spent N13.58bn, down 29.07 per cent from N19.14bn. Zenith Bank spent N6.15bn, up 28.72 per cent from N4.77bn, while Access Holdings spent N4.14bn, down 6.25 per cent from N4.42bn.

Biggest winners and cutters

Jaiz Bank recorded the highest percentage growth, with spending jumping 1,623.60 per cent from N30.72m to N529.49m. Sterling Financial Holdings followed with a 177.83 per cent increase, from N433m to N1.20bn. Stanbic IBTC Holdings increased spending 25.54 per cent to N2.78bn, and Wema Bank raised its expenditure 16.75 per cent to N1.13bn.

Five banks reduced their marketing spend. FCMB Group recorded the largest absolute reduction, cutting spending 38.55 per cent from N3.80bn to N2.33bn. First HoldCo cut 29.07 per cent to N13.58bn, and Guaranty Trust Holding Company reduced spending 29.01 per cent from N4bn to N2.84bn. Fidelity Bank trimmed 3.86 per cent to N26.19bn, while Access Holdings recorded a 6.25 per cent decline to N4.14bn.

CBN rule

The spending pattern comes months after the CBN tightened regulatory requirements for bank advertising and promotional activities. In a November 2025 letter to banks, payment service banks and other financial institutions, the apex bank said its thematic review had identified variations in how institutions interpreted disclosure, transparency and fair-marketing requirements.

The CBN directed banks to ensure advertisements remained factual, balanced and transparent, while prohibiting claims that could mislead consumers, obscure risks or create unfair comparisons. It also warned against exaggerating benefits, omitting material information or using unaudited financial statements in advertisements.

“Comparative, superlative, or de-marketing statements (direct or implied) are not permitted,” the CBN stated. It directed institutions to withdraw non-compliant advertisements and submit compliance attestations signed by their managing directors, executive compliance officers and chief compliance officers. The CBN said it would commence follow-up reviews from January 2026 and impose sanctions for breaches under the Banks and Other Financial Institutions Act 2020 and the Consumer Protection Regulations.

Fidelity Bank's financial statements housed its marketing under prepayments, including expenses covering future periods, such as insurance premiums, adverts and publicity, computer expenses and subscriptions.

What it means

Despite tighter regulatory scrutiny, banks collectively expanded marketing expenditure in Q1 2026. UBA's increase alone, N10.04bn, exceeded the combined reductions recorded by Access Holdings, Fidelity Bank, FCMB Group, First HoldCo and GTCO, which together cut spending by about N9.51bn. For consumers, the numbers point to aggressive competition for deposits and customers, but the CBN has put banks on notice that such advertising must not mislead.