The Central Bank of Nigeria (CBN) has disowned Zuldal Microfinance Bank (MFB) Limited, declaring that the institution is operating illegally and without regulatory approval.
In a statement on Thursday, the apex bank said its attention was drawn to the activities of the company, which reportedly operates branches in Lagos, Abuja, Kaduna and Kano while claiming to be licensed by the CBN.
“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 cited Section 2(1) of the Banks and Other Financial Institutions Act (BOFIA) 2020, which states that no person or entity may conduct banking business in Nigeria without being duly incorporated and holding a valid licence issued by the regulator.
The apex bank urged Nigerians to disregard any claims of approval by Zuldal MFB and to avoid carrying out transactions with the firm, warning that anyone who does so does it “at their own risk”.
It added that the bank remains committed to protecting the financial system and the public from unlicensed and fraudulent institutions.
A full list of licensed financial institutions, the CBN noted, is available on its website.