The Central Bank of Nigeria (CBN) has officially disowned a firm calling itself Zuldal Microfinance Bank Limited, warning that it is operating without a licence. The central bank clarified that Zuldal MFB is not authorised to conduct any microfinance or banking business in Nigeria — contrary to the claims made by the institution.
CBN’s public advisory stated that Zuldal MFB has no regulatory approval from the Central Bank, even though it reportedly runs branches in Lagos, Abuja, Kaduna, and Kano.
Why the CBN Is Concerned
At the heart of the CBN’s warning is a reference to the Banks and Other Financial Institutions Act (BOFIA) 2020, particularly Section 2(1), which clearly forbids any entity from carrying out banking business in Nigeria unless it is duly incorporated and holds a valid banking licence from the CBN.
Because Zuldal MFB lacks that licence, the CBN considers any claims to the contrary false and misleading.
The Public Warning: Don’t Take the Risk
- The CBN has strongly advised the public to disregard any assertions by Zuldal MFB that it is licensed or approved by the regulator.
- It has further warned against any financial transactions with the entity, stating that such dealings are undertaken at one’s own risk.
- To help people verify credible institutions, the CBN reminded everyone that its official list of licensed financial institutions is publicly available and regularly updated.
What Might Be Motivating Zuldal MFB
According to media reports, the organisation has been aggressively marketing itself:
- It is said to operate in multiple states, giving the impression of a wide network.
- Its promotional materials reportedly offer sharia-compliant services and advertise loans with “0% interest,” which can be very attractive — especially to people looking for faith-based or low-cost lending.
- There is evidence of a basic website and loan-guarantor forms circulating online, suggesting it is presenting itself as a fully functioning deposit-taking institution.
Still, despite all of this outward appearance, Zuldal MFB is not on the CBN’s register of licensed microfinance banks, meaning it lacks regulatory protection and may be highly risky for potential customers.
Broader Implications for the Financial Sector
The CBN’s intervention highlights a more systemic challenge: illegal financial operators pretending to be legitimate microfinance banks. This is not just a threat to individual consumers, but to the broader trust and stability of Nigeria’s financial system. Regulatory bodies like the CBN must constantly monitor, verify, and act against such actors to protect depositors and maintain market integrity.
The warning also underscores the need for financial literacy among Nigerians. Many people may be lured by enticing loan offers or promises of “banking made easy” — but without due diligence, they risk losing their money or falling victim to scams.
What You Should Do
- Verify Before You Transact
Confirm whether any microfinance bank is truly licensed by checking the CBN’s official list of approved institutions. - Be Wary of Too-Good-To-Be-True Offers
Extremely low-interest loans, aggressive promotions, or claims of “0%” interest should raise red flags if the institution isn’t clearly regulated. - Report Suspicious Entities
If you come across an institution claiming to be a bank or MFB, but you’re unsure of its legitimacy, report it to the CBN or other regulatory bodies. - Protect Your Funds
Avoid depositing money or taking loans from institutions that aren’t clearly licensed — the risk of loss is higher, and there may be no recourse if something goes wrong.
