The Central Bank of Nigeria (CBN) stated that it has not granted an operating licence to Zuldal Microfinance Bank to conduct any business activities, describing the bank as an unlicensed entity operating illegally in the country.
The apex bank made this known in a statement on Thursday, November 20, signed by its Acting Director of Corporate Communications, Hakama Sidi Ali.
It noted that Zuldal Microfinance Bank has reportedly opened branches in Lagos, Abuja, Kaduna, and Kano, presenting itself as a licensed microfinance institution.
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“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,” CBN stated.
This action, the apex bank said, violates the Banks and Other Financial Institutions Act (BOFIA) 2020.
It cited that Section 2(1) of the law stipulates, “No person shall carry on any banking business in Nigeria except if it is a company duly incorporated in Nigeria and holds a valid banking licence issued by the CBN.”
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The apex bank reiterated its commitment to safeguarding the financial system and protecting the public from unlicensed and fraudulent institutions.
“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,” CBN added.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
