CBN says ZULDAL microfinance bank not licensed

The Central Bank of Nigeria (CBN) on Thursday moved to distance itself from an institution parading itself as Zuldal Microfinance Bank Limited, warning the public that the entity is neither licensed nor authorised to conduct any form of banking business in the country.

The regulator issued the statement after reports surfaced that the company, which claims to operate branches in Lagos, Abuja, Kaduna and Kano, had been assuring customers it was duly certified by the apex bank.

In its statement, the CBN said it had not granted Zuldal microfinance bank any permission to carry out microfinance activities. “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 bank said.

The clarification comes at a time when Nigeria’s financial sector has seen a rise in unregulated lenders and fraudulent financial platforms exploiting gaps in public awareness.

The CBN, facing ongoing pressure to tighten oversight across the banking landscape, emphasised that operating any form of banking business without approval directly contravenes the law.

Citing Section 2(1) of the Banks and Other Financial Institutions Act (BOFIA) 2020, the regulator restated 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.”

Analysts say the warning underscores the bank’s attempts to limit reputational and financial risks in a market where informal lenders often target vulnerable consumers.

The CBN urged Nigerians to exercise caution and avoid engaging with Zuldal Microfinance Bank under any circumstances, stressing that anyone doing so does so at their own risk.

The central bank also reiterated its commitment to safeguarding the financial system, assuring consumers that it is stepping up efforts to identify and shut down illegal operators.

The CBN encouraged Nigerians to consult the official list of licensed financial institutions available on its website to confirm the legitimacy of any bank or lender before conducting transactions.

The statement, signed by Hakama Sidi Ali, acting director of corporate communications, reinforced that the CBN would continue working to shield the public from predatory practices and maintain confidence in the country’s financial sector.

Onyinye Nwachukwu

Onyinye Nwachukwu is the Abuja Bureau Chief of BusinessDay, overseeing coverage across Abuja and Northern Nigeria. With more than two decades of experience in economic and financial journalism, she reports on business, policy, and market trends, linking local developments to the global economy. A fellow of the International Monetary Fund (IMF) and recipient of the P. Vishwanathan Memorial Award for Excellence in Financial Journalism, she is known for her insightful storytelling and interviews with senior policymakers, diplomats, and business leaders. Well traveled and globally minded, Onyinye brings depth and international perspective to her reporting.