CBN Warns Public, Declares Zuldal Microfinance Bank Illegal

|By Babatunji Wusu

The Central Bank of Nigeria (CBN) has issued a strong warning to Nigerians, disowning Zuldal Microfinance Bank Limited and classifying its operations as illegal.

In a statement released on Wednesday by the Acting Director of Corporate Communications, Hakama Sidi Ali, the apex bank disclosed, dismissed and condemned claims by the organisation that it is licensed to operate as a microfinance bank in Nigeria. Zuldal had reportedly presented itself as a CBN-approved financial institution with branches in Lagos, Abuja, Kaduna and Kano.

The CBN clarified that Zuldal Microfinance Bank has no authorisation whatsoever to conduct banking or microfinance business in the country. It emphasised that Section 2(1) of the Banks and Other Financial Institutions Act (BOFIA) 2020 expressly prohibits any entity from carrying out banking services without a valid licence issued by the apex bank.

The bank urged Nigerians to disregard Zuldal’s claims and avoid any financial dealings with the entity, warning that anyone who engages with the firm does so at their own risk.

Reaffirming its mandate, the CBN said it remains committed to protecting the financial system and shielding the public from unlicensed and fraudulent institutions.

A full list of licensed financial institutions in Nigeria is available on the CBN website.