The Central Bank of Nigeria (CBN) has issued a warning regarding Zuldal Microfinance Bank Limited, stating that the entity is operating illegally without any regulatory approval. According to the CBN, Zuldal Microfinance Bank Limited claims to have branches in several major cities, including Lagos, Abuja, Kaduna, and Kano, and presents itself as a licensed microfinance bank. However, the CBN has confirmed that this is not the case.
The warning, released by the Acting Director of Corporate Communications, Osita Nwanisobi, references the Banks and Other Financial Institutions Act (BOFIA) 2020, which explicitly states that no person can carry on banking business in Nigeria without a valid banking license issued by the CBN. The CBN stressed that Zuldal Microfinance Bank Limited is not a licensed microfinance bank and has no authorization to operate or carry out any form of banking or microfinance business in Nigeria.
The CBN has urged Nigerians to avoid dealing with the firm, emphasizing that engaging in transactions with unlicensed financial operators carries significant risks. The public is 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 entity. The CBN’s warning highlights the importance of ensuring that financial institutions operate within the legal framework to protect consumers and maintain the stability of the financial system.
In recent years, the CBN has taken steps to strengthen the regulation of microfinance banks in Nigeria, aiming to promote financial inclusion and stability. The warning against Zuldal Microfinance Bank Limited serves as a reminder to the public to be cautious when dealing with financial institutions and to verify their legitimacy before engaging in any transactions. As the CBN continues to monitor the financial sector, it is essential for consumers to be aware of the risks associated with unlicensed financial operators and to take necessary precautions to protect their finances.