The Central Bank of Nigeria (CBN) says Zuldal Microfinance Bank (MFB) Limited is not licensed.
The regulator spoke on the company’s legal status in a statement on Thursday, dismissing its authority to operate.
“The attention of the Central Bank of Nigeria (CBN) has been drawn to the activities of an entity operating under the name Zuldal Microfinance Bank Limited, which reportedly has branches in Lagos, Abuja, Kaduna, and Kano, and claims to be licensed by the CBN to carry out microfinance banking in Nigeria,” the statement reads.
“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.
“For the avoidance of doubt, Section 2(1) of the Banks and Other Financial Institutions Act (BOFIA) 2020 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”.
The CBN “strongly advised” Nigerians to disregard any claims of licensing or approval by the microfinance bank and to refrain from engaging in any financial transactions with the entity, warning that “such dealings are undertaken at the individual’s own risk”.
The regulator reiterated its commitment to safeguarding the financial system and protecting members of the public from unlicensed and fraudulent institutions.
The apex bank said a list of all licensed financial institutions in Nigeria is available on its website.
