The Central Bank of Nigeria has distanced itself from Zuldal Microfinance Bank Limited, claiming that it is conducting business illegally and without legal authority.
Hakama Sidi Ali, the Acting Director of Corporate Communications, issued a formal statement acknowledging that the apex bank was made aware of claims that Zuldal was misrepresenting itself as a fully licensed microfinance company having branches in Lagos, Abuja, Kaduna, and Kano.
According to the CBN, Zuldal is not one of the permitted microfinance banks operating in the country. The apex bank highlighted that the group had no right to engage in banking or microfinance activities, undercutting its claims of CBN approval, which the public should dismiss.
The News Chronicle understands that the regulator is concerned about the rising number of unlicensed financial operators targeting unsuspecting Nigerians through online promotions, physical events and misleading adverts. This latest warning, officials say, forms part of heightened efforts to protect citizens from fraud and preserve confidence in the financial system.
Section 2(1) of the Banks and Other Financial Institutions Act 2020, which states unequivocally that only businesses properly formed and granted legal banking licenses are allowed to do banking activity in Nigeria, was highlighted by the CBN in its comprehensive guidance. The bank warned Nigerians that doing business with unregistered operators puts them at personal risk and advised them to stay away from Zuldal.
Checks online show that Zuldal has recently promoted itself aggressively through social-media campaigns, including Hausa-language posts, suggesting that it offers sharia-compliant services and easy-access loans. Some of its flyers also advertise loans with “0 percent interest”, a claim financial experts say is often used to lure unsuspecting customers into fraudulent schemes.
Despite its online presence and promotional materials, Zuldal does not appear on the Nigeria Deposit Insurance Corporation’s list of insured microfinance banks. With the CBN’s latest disclaimer reaffirming that the firm holds no authorization to operate, Nigerians are being urged to steer clear and verify the legitimacy of any financial institution before engaging in transactions.
