CBN Warns Nigerians Against Illegal Microfinance Bank Over Fraud Risks

The Central Bank of Nigeria has cautioned the public against dealing with Zuldal Microfinance Bank Limited, stating that the company is operating without regulatory approval.

In a statement released on Thursday, the Acting Director of Corporate Communications, Hakama Sidi Ali, confirmed that Zuldal Microfinance Bank has no authorization to conduct banking or microfinance services in Nigeria. The apex bank described the entity’s activities as a violation of the Banks and Other Financial Institutions Act (BOFIA) 2020.

According to Section 2(1) of BOFIA, no individual or organization is permitted to run any form of banking business in Nigeria without proper incorporation and a valid licence issued by the Central Bank.

The CBN said it was alerted to claims that Zuldal Microfinance Bank was operating branches in Lagos, Abuja, Kaduna, and Kano, while presenting itself as a fully licensed microfinance institution.

The statement stressed that Zuldal has never been licensed by the Central Bank and is not permitted to carry out any banking or micro-lending activities. The bank urged individuals and businesses to avoid all transactions with the firm, warning that engagements with unregulated operators expose customers to financial fraud and loss.

The apex bank urged Nigerians to disregard any announcements, promotional messages, or licensing claims attributed to Zuldal Microfinance Bank and to exercise caution when dealing with entities that are not listed as approved financial institutions.

This advisory forms part of the CBN’s ongoing efforts to protect consumers, strengthen financial security, and ensure that only verified institutions offer financial services in Nigeria.