The Central Bank of Nigeria (CBN) has issued a warning to the public about Zuldal Microfinance Bank (MFB) Limited, clarifying the institution is not licensed to operate in the country.
The regulator clarified this in a statement on Thursday dismissing any claims that Zuldal MFB is authorized to carry out banking activities.
“The attention of the Central Bank of Nigeria (CBN) has been drawn to the activities of an entity operating as Zuldal Microfinance Bank Limited, with alleged branches in Lagos, Abuja, Kaduna, and Kano,” the CBN stated.
“We emphasize that Zuldal Microfinance Bank Limited is not a licensed Microfinance Bank and has no authorization from the CBN to conduct banking or microfinance business in Nigeria.”
Persecondnews reports that according to Section 2(1) of the Banks and Other Financial Institutions Act (BOFIA) 2020, no entity can engage in banking business without a valid license from the CBN.
Quoting the law, the apex bank insisted that Zuldal MFB’s operations are illegal.
“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,” the statement said.
The public is advised to disregard any claims of licensing and refrain from transactions with Zuldal MFB, as dealings with the entity are at their own risk.
“We strongly advise the public to be cautious and not engage in any financial transactions with Zuldal Microfinance Bank Limited,” the CBN warned.
The apex bank reaffirmed its commitment to protecting the financial system and the public from unlicensed institutions.
Persecondnews reports that a list of licensed financial institutions is available on the CBN website.
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