The Central Bank of Nigeria (CBN) has declared Zuldal Microfinance Bank Limited an illegal financial institution, warning that the firm is operating without regulatory approval.
The apex bank issued the warning in a statement on Thursday, signed by its Acting Director of Corporate Communications, Hakama Sidi Ali.
The CBN said the institution’s activities violate the Banks and Other Financial Institutions Act (BOFIA) 2020.
Citing Section 2(1) of the Act, the CBN stated that no individual or entity is permitted to conduct banking business in Nigeria without being duly incorporated and licensed by the apex bank.
The statement followed reports that Zuldal Microfinance Bank, which claims to have branches in Lagos, Abuja, Kaduna, and Kano, had been presenting 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 CBN stated.
The bank emphasised that the company’s claim of being licensed is false and should be ignored by the public.
It further warned Nigerians to avoid engaging in any financial dealings with the entity, noting that transactions with unlicensed operators expose customers to significant risks, including fraud and loss of funds.
“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.
The CBN has recently intensified its crackdown on illegal financial operators as part of its efforts to safeguard the banking sector and protect consumers.