CBN Declares Zuldal Microfinance Bank Limited Illegal

The Central Bank of Nigeria (CBN) has officially disowned Zuldal Microfinance Bank Limited, cautioning that the organization is operating illegally without any regulatory approval.

In a warning issued on Thursday by the Acting Director of Corporate Communications, Hakama Sidi Ali, the CBN referred to the Banks and Other Financial Institutions Act (BOFIA) 2020.

The Act clearly states in Section 2(1) 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 central bank also noted that it has received reports indicating that Zuldal Microfinance Bank Limited, which claims to have branches in Lagos, Abuja, Kaduna, and Kano, misrepresents itself as 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 apex bank added that the institution’s claim of being licensed is false and should be disregarded by the public.

It urged Nigerians to avoid dealing with the firm, stressing that engaging in transactions with unlicensed financial operators carries significant risks.

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.”