The Central Bank of Nigeria (CBN) has issued a disclaimer regarding Zuldal Microfinance Bank Limited, stating that the entity is not licensed to operate in the country. According to the CBN, Zuldal Microfinance Bank Limited claims to have branches in various cities, including Lagos, Abuja, Kaduna, and Kano, and purports to be licensed by the CBN to carry out microfinance banking in Nigeria. However, the apex bank has confirmed that this is not the case.
The CBN’s Acting Director of Corporate Communications, Hakama Sidi Ali, issued a statement on Wednesday, warning the public about the unlicensed microfinance bank. The statement cited Section 2(1) of the Banks and Other Financial Institutions Act (BOFIA) 2020, which 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.
The CBN has advised the general public to disregard any claims of licensing or approval by Zuldal Microfinance Bank Limited and to refrain from engaging in any financial transactions with the entity. This warning is intended to protect members of the public from potential financial losses, as dealings with unlicensed institutions are undertaken at the individual’s own risk.
The CBN has reiterated its commitment to safeguarding the financial system and protecting the public from unlicensed and fraudulent institutions. To verify the licensing status of financial institutions in Nigeria, the public can access a list of all licensed financial institutions on the CBN website at www.cbn.gov.ng. This move is part of the CBN’s efforts to maintain the integrity of the financial system and prevent unscrupulous entities from exploiting unsuspecting individuals.
The CBN’s disclaimer serves as a reminder of the importance of verifying the licensing status of financial institutions before engaging in any financial transactions. By taking this step, the public can help prevent financial losses and promote a stable financial system. As the CBN continues to monitor and regulate the financial sector, it is essential for the public to remain vigilant and report any suspicious activities to the relevant authorities.