CBN Issues Critical Public Alert Against Unlicensed Microfinance Institution ‘Zuldal’

The Central Bank of Nigeria (CBN) has issued an urgent public warning advising citizens to immediately stop all transactions with Zuldal Microfinance Bank. The apex bank confirmed that Zuldal is unlicensed and not authorized to operate within Nigeria’s financial system.

This advisory is part of the CBN’s ongoing efforts to protect the public from financial scams and the risks associated with unapproved financial institutions. The warning underscores the bank’s commitment to safeguarding depositors and maintaining confidence in the regulated banking sector.

The Risks of Engaging with Unlicensed Financial Institutions

Zuldal, operating outside the regulatory framework established by the Banks and Other Financial Institutions Act (BOFIA), poses serious risks to customers:

• No Deposit Protection: Deposits held with unlicensed institutions like Zuldal are not covered by the Nigeria Deposit Insurance Corporation (NDIC). Customers have no recourse if the institution collapses.
• Banking Fraud: Unlicensed operators may employ misleading branding or aggressive marketing tactics to attract unsuspecting customers, increasing the risk of financial loss.
• Regulatory Compliance: Nigerians are urged to verify the licensing status of any financial institution on the CBN’s official website before making investments or deposits.

CBN’s Stance on Microfinance Regulation

The CBN reiterates that only institutions meeting strict capital, governance, and operational standards are authorized to offer financial services to the public. The bank encourages the public to report suspicious activities involving unauthorized financial entities to regulatory and law enforcement authorities.

This action highlights the CBN’s commitment to ensuring stability, integrity, and transparency within Nigeria’s financial system, protecting citizens from illicit operators seeking to exploit public trust.