The Central Bank of Nigeria (CBN) has officially disowned Zuldal Microfinance Bank Limited, describing the institution as an unlicensed entity conducting illegal banking operations in Nigeria. The apex bank stressed that the institution has no regulatory approval, confirming Zuldal Microfinance Bank unlicensed activities across multiple states.

In a statement shared on X (formerly Twitter) on Thursday, the Acting Director of Corporate Communications, Hakama Sidi Ali, said Zuldal Microfinance Bank violated the Banks and Other Financial Institutions Act (BOFIA) 2020, which clearly states under Section 2(1) 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.”

CBN noted that the attention of the apex bank was drawn to reports indicating that Zuldal Microfinance Bank falsely claimed to operate branches in Lagos, Abuja, Kaduna, and Kano, presenting itself as a legitimate 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 read.

The CBN strongly urged Nigerians to disregard any claims of licensing and avoid transacting with the entity, warning that dealing with unlicensed operators carries 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 apex bank added.

This move is part of CBN’s ongoing effort to protect consumers and maintain stability in Nigeria’s financial sector by monitoring unlicensed institutions and cracking down on illegal banking practices.