CBN urged the public to refrain from engaging in any financial transactions with the entity, adding that such dealings are undertaken at the individual’s own risk.
By Kehinde Okeowo
The Central Bank of Nigeria (CBN) has warned the public against making financial transactions through Zuldal Microfinance Bank Limited, stating unequivocally that the institution is not licensed.
The apex bank issued the disclaimer on Wednesday in a statement made available to journalists by its Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali.
According to the CBN, the microfinance bank, which reportedly has branches in Lagos, Abuja, Kaduna, and Kano, has no authorization to operate or carry out any form of banking or microfinance business in the country.
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For the avoidance of doubt, the CBN (often referred to as the ‘banker’s bank’) noted that Section 2(1) of the Banks and Other Financial Institutions Act (BOFIA) 2020 stipulates:
“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, therefore, urged the general public to disregard claims by Zuldal Microfinance Bank Limited that it is licensed or approved to operate.
The CBN further urged people to refrain from engaging in any financial transactions with the entity, as such dealings are undertaken at the individual’s own risk.
It also reiterated its commitment to safeguarding the financial system and protecting members of the public from unlicensed and fraudulent institutions.
