The Central Bank of Nigeria (CBN) has issued a stern warning to the public, disowning Zuldal Microfinance Bank Limited and declaring it an unlicensed entity operating illegally within the country’s financial landscape.
In an official statement shared on X (formerly Twitter) on Thursday, the Acting Director of Corporate Communications, Hakama Sidi Ali, confirmed that Zuldal Microfinance Bank has no regulatory approval to conduct banking activities in Nigeria, a direct violation of the Banks and Other Financial Institutions Act (BOFIA) 2020.
The apex bank’s attention was drawn to reports suggesting that Zuldal Microfinance Bank was presenting itself as a licensed microfinance institution, claiming to operate branches in major cities including Lagos, Abuja, Kaduna, and Kano.
“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 CBN statement asserted.
Legal Mandate and Public Risk
The CBN cited Section 2(1) of the BOFIA 2020, which explicitly stipulates 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.”
By operating without this statutory licence, Zuldal Microfinance Bank is in breach of the foundational regulations governing the country’s financial institutions.
The apex bank strongly advised the general public to disregard any claims of licensing or approval by the firm and to refrain from engaging in any financial transactions with the entity. The CBN warned that dealings with unlicensed operators carry significant, unmitigated risks.
“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,” the statement concluded.
