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CBN Declares Zuldal Microfinance Bank Illegal, Warns Customers to Steer Clear

by Covenant Oluwadunsin Aladenola
November 21, 2025
in FinTech & Digital Money
Reading Time: 2 mins read
CBN logo warning against Zuldal Microfinance Bank illegal operations

The Central Bank of Nigeria (CBN) has issued a stern warning to the public regarding the operations of Zuldal Microfinance Bank Limited, officially declaring the entity illegal and unlicensed.

In a move to protect the integrity of Nigeria’s financial ecosystem, the apex bank disclaimed the firm on Thursday, November 20, 2025, stating that Zuldal MFB has absolutely no authorization to conduct banking or microfinance business in the country.

The Claim vs. The Reality

According to the CBN’s Acting Director of Corporate Communications, Hakama Sidi Ali, Zuldal MFB has been masquerading as a legitimate financial institution. The firm claims to have physical branches in key economic hubs, including Lagos, Abuja, Kaduna, and Kano.

Perhaps more concerning for the tech and startup community is their aggressive digital marketing strategy. Investigations reveal that the outfit has been leveraging social media to promise “banking made easy” and “0% interest loans”—classic hooks often used to lure unsuspecting customers into unregulated schemes.

Despite hosting a “grand opening” at the National Women Centre in Abuja earlier in September and circulating loan guarantor forms online, the CBN has confirmed that Zuldal is not on the list of licensed operators, nor are they insured by the Nigeria Deposit Insurance Corporation (NDIC).

What This Means for You

The CBN cited Section 2(1) of the Banks and Other Financial Institutions Act (BOFIA) 2020, which criminalizes carrying out banking business without a valid license.

For Nigerian consumers and fintech enthusiasts, the message is clear: Any transaction with Zuldal Microfinance Bank is at your own risk. If the institution folds or acts fraudulently, there is no regulatory safety net (like NDIC insurance) to recover your funds.

READ ALSO: CBN Imposes Exclusive Partnerships and Slashes Daily Limits to N1.2 Million on Nigeria’s POS Agents

Editor’s Note

As the Nigerian fintech space continues to grow, bad actors will inevitably try to blend in with legitimate startups.

  • Verify before you trust: Always check the official CBN or NDIC website to confirm a bank’s license status before depositing money or sharing BVN details.

  • Watch for Red Flags: Offers that seem too good to be true (like interest-free loans from unknown entities) usually are.

The CBN remains committed to clamping down on illegal financial operators to ensure the stability of the financial system.

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Covenant Oluwadunsin Aladenola

Covenant Oluwadunsin Aladenola

Covenant Aladenola is part of Techsoma’s senior editorial team, where he helps shape the publication’s storytelling direction and editorial strategy...

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