The Central Bank of Nigeria (CBN) has issued a strong public warning, cautioning Nigerians against engaging in any business with an entity operating as Zuldal Microfinance Bank Limited, stating that the firm is completely unlicensed and operating illegally.
The apex bank was prompted to act after receiving reports that Zuldal, which allegedly runs branches in major cities including Lagos, Abuja, Kaduna, and Kano, was falsely claiming to possess a valid CBN license for microfinance banking.
Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN, unequivocally stated that the claim is false. “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,” she said.
Sidi Ali referenced Section 2(1) of the Banks and Other Financial Institutions Act (BOFIA) 2020, which legally mandates that no person can carry on any banking business in Nigeria without being a duly incorporated company that holds a valid banking license from the CBN.
The economic implications of dealing with unlicensed entities are severe. Legitimate microfinance institutions (MFIs) play a critical role in Nigeria’s economy by providing financial access, credit, and savings opportunities to low-income earners, small farmers, and micro-entrepreneurs who are typically excluded by larger commercial banks. Unregulated operators, however, pose a significant risk to consumers and the wider financial system.
Economic experts warn that the proliferation of such illegal outfits can undermine financial stability, lead to high-interest predatory lending, and erode the crucial public confidence that the CBN works to build. When an unlicensed bank collapses or flees with deposits, the lack of regulatory oversight means victims have no recourse to protection schemes, like the Nigeria Deposit Insurance Corporation (NDIC). “The rise of these illegal firms often targets the most financially vulnerable populations,” an analyst noted, “ultimately setting back efforts for financial inclusion and poverty alleviation.”
The CBN has strongly advised the public to disregard any claims of approval by Zuldal Microfinance Bank Limited and refrain from transactions with the firm, warning that such dealings are undertaken at the individual’s own risk.
The bank reiterated its commitment to protecting the integrity of the financial system, urging Nigerians to verify the licensing status of any financial institution on the CBN’s official website. This proactive warning is part of the CBN’s effort to safeguard consumers from unregulated and fraudulent operators.
