CBN Declares Zuldal Microfinance Bank Operations Illegal
The Central Bank of Nigeria has formally distanced itself from Zuldal Microfinance Bank Limited, cautioning Nigerians that the entity is operating without regulatory approval and should not be regarded as a licensed financial institution.
In a statement issued on Thursday, the Acting Director of Corporate Communications, Hakama Sidi Ali, said the apex bank had been alerted to claims by the firm, which purports to have branches in Lagos, Abuja, Kaduna, and Kano, that it is a CBN-licensed microfinance bank.
The CBN stressed that, “The said Zuldal Microfinance Bank Limited is not a licensed Microfinance Bank and has no authorisation from the Central Bank of Nigeria to operate or carry out any form of banking or microfinance business in Nigeria.”
The bank further stated that the institution’s claim of being licensed is false and should be dismissed by the public.
Referencing the Banks and Other Financial Institutions Act 2020, the CBN highlighted that Section 2(1) of the law expressly states that “no person shall carry on any banking business in Nigeria except it is a company duly incorporated in Nigeria and holds a valid banking licence issued by the CBN.”
The apex bank urged Nigerians to avoid dealing with the firm, warning that patronising unlicensed operators exposes individuals to severe financial risks.
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According to the statement, “the general public is therefore strongly advised to disregard any claims of licensing or approval by Zuldal Microfinance Bank Limited and to refrain from engaging in any financial transactions with the said entity, as such dealings are undertaken at the individual’s own risk.”
Zuldal is also not insured by the Nigeria Deposit Insurance Corporation.
The CBN reaffirmed its commitment to safeguarding Nigeria’s financial system from unregulated and potentially fraudulent institutions, adding that the full list of licensed financial institutions is available on its website.
