The Central Bank of Nigeria says Zuldal Microfinance Bank Limited is not licensed, describing it as an unlicensed entity operating illegally in the country.

According to a statement shared on X on Thursday by the Acting Director of Corporate Communications, Hakama Sidi Ali, revealed the bank had no regulatory approval to carry out banking activities, in violation of the Banks and Other Financial Institutions Act (BOFIA) 2020.

“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 said Zuldal Microfinance Bank Limited is not a licensed Microfinance Bank and has no authorization 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 statement added.

The apex bank urged Nigerians to disregard any claims of licensing and avoid engaging in transactions with the firm, warning that dealings with unlicensed operators carry significant risks.

“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,” the statement added.