21
Nov
Nov
CBN DECLARES ZULDAL MICROFINANCE BANK ILLEGAL, WARNS NIGERIANS TO AVOID ANY TRANSACTIONS WITH BANK
-
CapitalTimesNews / 2 months
- 0
- 2 min read
By Akpo Ojo The Central Bank of Nigeria (CBN) has declared Zuldal Microfinance Bank Limited illegal, labeling the institution as unlicensed and operating unlawfully within the country. In a statement issued on Thursday via X, the acting Director of Corporate Communications, Hakama Sidi Ali, clarified that the bank does not have the necessary regulatory approval to engage in any banking activities, thus violating the Banks and Other Financial Institutions Act (BOFIA), 2020. Citing Section 2(1) of the Act, the CBN emphasized: “No person shall carry on any banking business in Nigeria unless it is a company duly incorporated in Nigeria and possesses a valid banking license issued by the CBN.” The central bank noted that it had received reports of Zuldal Microfinance Bank falsely presenting itself as a licensed institution, claiming to have branches in Lagos, Abuja, Kaduna, and Kano. “The aforementioned Zuldal Microfinance Bank Limited is not a licensed microfinance bank and does not have authorization from the Central Bank of Nigeria to operate or conduct any banking or microfinance activities in Nigeria,” the statement highlighted. The CBN warned the public against engaging with the institution, highlighting the risks associated with unregulated entities. “The general public is strongly advised to disregard any claims of licensing or approval by Zuldal Microfinance Bank Limited and to avoid any financial transactions with this entity, as such dealings are undertaken at the individual’s own risk,” the statement concluded. Commenting on the development, a public affairs analyst, Dr. Ibrahim Modibbo, commended the apex bank for the development, stressing that the CBN needs to take a strong stance in ensuring the banking sector is regulated to protect the banking public. “This quick reaction by the Yemi Cardoso led CBN indicates that the apex bank is on top of its game, in monitoring the activities of unlicenced entities that want to hide under the guise of commercial or microfinance banks to defraud unsuspecting Nigerians,” he said.