The Central Bank of Nigeria has issued a public advisory warning Nigerians that Zuldal Microfinance Bank is not licensed to operate as a financial institution in the country. The notice, released through the CBN’s consumer protection department, cautions individuals and businesses against transacting with the entity to avoid potential financial risks.
According to the apex bank, Zuldal Microfinance Bank has been operating outside the legal regulatory framework and offering services without obtaining the mandatory approval required for microfinance institutions. The CBN said its surveillance team identified the entity through routine monitoring aimed at curbing illegal financial operations.
The advisory comes at a time when the number of unregistered and fraudulent financial operators has increased nationwide, targeting low-income earners and small businesses. Industry experts say many customers are often lured by high interest promises and easy-access loans without verifying the legitimacy of these institutions.
The CBN reiterated that only licensed financial institutions are authorized to accept deposits, issue loans, or conduct any form of banking activity. It urged the public to always verify the regulatory status of financial entities through the official CBN website or consumer support channels before engaging in any transaction.
Regulators also emphasized that citizens should report suspicious operators to the nearest CBN office or law enforcement agency. The apex bank said it remains committed to strengthening consumer protection and safeguarding the integrity of the financial system.
Analysts note that the warning could be followed by enforcement action if Zuldal continues operations without authorization, as operating an unlicensed bank violates Nigeria’s banking laws.
The CBN’s public advisory is part of ongoing efforts to curb illegal financial activities and ensure that Nigerians transact only with institutions that meet regulatory standards.