The Central Bank of Nigeria has distanced itself from Zuldal Microfinance Bank Limited, declaring that the institution is operating illegally without any form of regulatory approval.
In a statement issued on Thursday by the Acting Director of Corporate Communications, Hakama Sidi Ali, the apex bank said the company has no licence to operate as a microfinance bank in the country.
The CBN, citing Section 2(1) of the Banks and Other Financial Institutions Act (BOFIA) 2020, noted that the law expressly provides that no individual or entity can engage in banking business in Nigeria without being duly incorporated and licensed by the apex bank.
It said its attention was drawn to reports that the firm, which claims to have branches in Lagos, Abuja, Kaduna and Kano, had been parading itself as a CBN-licensed microfinance bank.
“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 regulator described the bank’s claim of being certified by the CBN as false and misleading.
The statement further warned members of the public to steer clear of the institution, stressing that transacting with unlicensed financial operators exposes individuals to severe 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 CBN added.
