By Musemil Abubakar
The Central Bank of Nigeria (CBN) has declared that Zuldal Microfinance Bank Limited is operating illegally in the country, stating that the entity has no licence to carry out any form of banking or microfinance business.
In a statement posted on X on Thursday, the Acting Director of Corporate Communications, Hakama Sidi Ali, said Zuldal MFB had not received regulatory approval as required under the Banks and Other Financial Institutions Act (BOFIA) 2020.
Citing Section 2(1) of the Act, the CBN emphasised that no institution may conduct banking business in Nigeria without incorporation and a valid licence issued by the apex bank.
The regulator said its attention was drawn to reports that Zuldal MFB, which claims to operate branches in Lagos, Abuja, Kaduna and Kano, had been presenting itself as a duly licensed microfinance institution.
“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 statement said.
The CBN warned members of the public to avoid transacting with the firm, stressing that dealing with unlicensed operators exposes individuals to significant financial 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 bank warned.
