CBN Warns Public Against Zuldal MFB

The Central Bank of Nigeria (CBN) has issued a formal disclaimer distancing itself from Zuldal Microfinance Bank Limited, warning Nigerians that the company is operating illegally without regulatory approval.

The apex bank made the announcement on Thursday following reports that the firm has been presenting itself as a CBN-licensed microfinance institution.

According to the CBN, Zuldal Microfinance Bank Limited has been claiming to operate branches in Lagos, Abuja, Kaduna, and Kano, misleading customers into believing it is properly registered and authorised to conduct financial services.

The Acting Director of Corporate Communications, Hakama Sidi Ali, said the bank’s activities came to the regulator’s attention after multiple complaints and inquiries from members of the public.

In its statement, the apex bank was emphatic that Zuldal Microfinance Bank has no licence or authorisation to conduct banking business in Nigeria.

“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 statement read.

The CBN reiterated that any financial institution offering banking services must obtain proper licensing, meet regulatory requirements, and operate under strict supervision to protect depositors and ensure financial stability. It warned that institutions operating outside the regulatory framework pose significant risks to customers, including potential loss of funds, fraud, and lack of recourse in the event of disputes.

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The central bank urged Nigerians to always verify the licensing status of any financial institution before engaging in transactions, emphasising that the list of all validly licensed microfinance banks is publicly available on the official CBN website.

The apex bank also encouraged customers to report suspicious or unlicensed financial operators to law enforcement agencies and financial regulators for prompt action.

Thursday’s disclaimer forms part of the CBN’s wider efforts to clamp down on unregulated financial institutions, Ponzi schemes, and entities falsely presenting themselves as legitimate banks.

In recent years, the regulator has intensified public sensitisation campaigns and enforcement actions to curb the activities of fraudulent operators in the financial sector.

The CBN assured the public that it remains committed to safeguarding the integrity of Nigeria’s financial system and protecting citizens from illegal financial schemes. It noted that it will not hesitate to take legal and regulatory measures against organisations or individuals who attempt to mislead the public or violate Nigeria’s banking laws.

The apex bank further advised customers who may have already conducted business with Zuldal Microfinance Bank Limited to immediately notify the appropriate law enforcement authorities and seek professional guidance to mitigate potential risks.

As part of its concluding remarks, the CBN encouraged Nigerians to prioritise financial safety by patronising only approved banks and microfinance institutions, adding that engaging with unlicensed operators undermines consumer protection and exposes the public to financial harm.

With the latest alert, the CBN continues its drive to strengthen public awareness and ensure that only credible, licensed institutions participate in Nigeria’s financial sector.