CBN Declares Zuldal Microfinance Bank Unlicensed

The Central Bank of Nigeria (CBN) has officially declared Zuldal Microfinance Bank unlicensed to operate, warning the public to avoid engaging with the institution. In a statement released by the apex bank, it said that Zuldal Microfinance Bank has not met regulatory requirements and therefore lacks the legal authority to carry out banking activities in Nigeria. The CBN stressed that any deposits or financial transactions conducted with the bank would not be protected under existing banking regulations.

According to the CBN, the decision follows routine monitoring and verification of banking institutions across the country. The apex bank noted that Zuldal Microfinance Bank had been operating without the proper license, in violation of the regulatory framework governing microfinance banks. The CBN warned that engaging with unlicensed financial operators exposes individuals and businesses to potential financial loss, fraud, and other security risks.

The bank urged the general public to exercise caution and to only transact with licensed and regulated financial institutions. It reminded Nigerians that all licensed microfinance banks are listed on the CBN’s official website, and customers can verify the status of any financial institution before engaging in deposits, loans, or other banking services.

In addition, the CBN called on relevant law enforcement and regulatory agencies to take appropriate action against Zuldal Microfinance Bank for operating illegally. It emphasised that unlicensed banks undermine public confidence in the financial system and pose significant risks to the economy, particularly in terms of deposit protection, financial stability, and regulatory compliance.

The apex bank also used the announcement to highlight its ongoing efforts to strengthen the microfinance sector, protect depositors, and promote financial inclusion. CBN officials reiterated that rigorous licensing procedures, continuous supervision, and timely intervention are essential to ensuring that the sector remains safe, transparent, and trustworthy for all Nigerians.

Members of the public have been urged to report suspicious banking activities or institutions claiming to be microfinance banks without proper licensing. The CBN assured that such reports would be promptly investigated and appropriate measures taken to safeguard consumers.

The declaration against Zuldal Microfinance Bank serves as a reminder of the importance of regulatory compliance in the banking sector and reinforces the CBN’s commitment to maintaining the integrity and stability of Nigeria’s financial system. By alerting the public and enforcing licensing requirements, the apex bank aims to prevent potential losses and foster trust in legitimate banking institutions.