CBN Flags Unlicensed Microfinance Bank Operating in Four States
By Patience Ikpeme
The Central Bank of Nigeria (CBN) has issued a serious public notice regarding the operations of an entity known as Zuldal Microfinance Bank Limited, which has reportedly been conducting banking activities across four major Nigerian cities.
The apex bank confirmed that its attention was drawn to the entity, which maintains branches in Lagos, Abuja, Kaduna, and Kano, and falsely asserts that it is licensed by the CBN to offer microfinance banking services in Nigeria.
The CBN, which is the sole issuer of banking licenses in the country, explicitly denied authorizing the institution. It clarified that “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 regulatory body subsequently directed attention to the legal requirements governing the sector, noting the provisions of Section 2(1) of the Banks and Other Financial Institutions Act (BOFIA) 2020. This statute unequivocally stipulates 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.”
Hakama Sidi Ali (Mrs.), Ag. Director, Corporate Communications, released a statement cautioning the general populace about the risks involved in transacting with the unauthorized firm. She noted, “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.”
Mrs. Sidi Ali concluded by stating that the CBN’s primary focus remains on maintaining the integrity of the nation’s financial landscape. She confirmed that the bank “remains committed to safeguarding the financial system and protecting members of the public from unlicensed and fraudulent institutions.”
For due diligence, a complete and verifiable list of all licensed financial institutions in Nigeria is readily available on the CBN website: www.cbn.gov.ng.
