The Central Bank of Nigeria (CBN) has distanced itself from Zuldal Microfinance Bank Limited, declaring the institution unlicensed and operating illegally within the country.
In a statement released on Thursday via X, the Acting Director of Corporate Communications, Hakama Sidi Ali, clarified that the bank lacks regulatory approval to conduct any banking activities, thereby breaching the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.
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Quoting Section 2(1) of the Act, the CBN noted: “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 apex bank explained that its attention was drawn to reports of Zuldal Microfinance Bank presenting itself as a licensed institution, with purported branches in Lagos, Abuja, Kaduna, and Kano.
“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 stressed.
The CBN cautioned Nigerians against engaging with the firm, warning of the dangers associated with unregulated operators.
“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 statement added.