CBN Declares Zuldal MFB Illegal

CBN Declares Zuldal Microfinance Bank Illegal

On November 20, 2025, the Central Bank of Nigeria (CBN) issued a decisive statement disowning Zuldal Microfinance Bank Limited. The apex bank clarified that the institution’s claim of being licensed was false and urged the public to disregard such assertions. This announcement has significant implications for Nigeria’s financial sector, particularly in the microfinance space where trust and regulatory compliance are paramount.

Background

Microfinance banks in Nigeria are regulated by the CBN, which grants licenses to institutions that meet strict requirements designed to protect depositors and ensure financial stability. These banks play a crucial role in providing financial services to low-income individuals and small businesses. However, the sector has occasionally faced challenges with fraudulent or unlicensed operators attempting to exploit unsuspecting customers.

Zuldal Microfinance Bank Limited presented itself as a legitimate financial institution, claiming to have obtained regulatory approval. The CBN’s declaration directly contradicts this narrative, exposing the bank’s operations as illegal.

The CBN’s Position

The CBN emphasized that Zuldal MFB has no form of regulatory approval and is not recognized as a licensed financial institution in Nigeria. By categorically disowning the entity, the apex bank sought to protect the public from potential financial harm. The statement serves as both a warning to depositors and a reaffirmation of the CBN’s commitment to safeguarding Nigeria’s financial system.

Implications for the Public

The announcement carries several implications. First, individuals and businesses who may have engaged with Zuldal MFB are at risk of losing funds, as the institution operates outside the legal framework. Second, the declaration highlights the importance of verifying the legitimacy of financial institutions before conducting transactions. Finally, it underscores the CBN’s vigilance in monitoring the sector and taking swift action against illegal operators.

Wider Impact on the Microfinance Sector

This development may prompt increased scrutiny of other microfinance institutions, reinforcing the need for transparency and compliance. It also serves as a reminder of the challenges regulators face in balancing financial inclusion with consumer protection. While microfinance banks are essential for expanding access to credit and savings, unlicensed operators undermine public confidence in the system.

Let’s Take a Break

The CBN’s declaration against Zuldal Microfinance Bank Limited is a strong regulatory move aimed at protecting Nigerians from fraudulent financial practices. By exposing the institution’s false claims of licensing, the apex bank has reaffirmed its role as the guardian of Nigeria’s financial stability. The incident is a cautionary tale for depositors and a call for vigilance in engaging with financial service providers.