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The Central Bank of Nigeria (CBN) has opened applications for the second cohort of its Regulatory Sandbox Programme, introducing dedicated testing tracks for virtual asset services and data-enabled financial innovations.
The initiative is designed to give eligible innovators a controlled environment to test new financial products, services and business models under the supervision of the apex bank.
In a statement signed by the Acting Director, Corporate Communications and Investor Relations Department, Hakama Sidi-Ali, the CBN invited eligible financial institutions, virtual asset service providers (VASPs), fintech companies and technology firms to apply for participation.
Applications for the second cohort opened on August 20 and will close on August 31, 2026.
CBN introduces VASP, Non-VASP testing tracks
The second cohort features two dedicated testing tracks.
The VASP track is targeted at innovations involving virtual assets, stablecoins, payments, settlement, custody, wallets and other related financial infrastructure that require supervised live testing.
The second track, focused on data-enabled financial services or Non-VASP innovations, is designed for solutions that use secure digital infrastructure and permission-based data sharing to improve financial inclusion, payments, credit, risk management, operational efficiency and consumer outcomes.
Under the programme, successful applicants will be allowed to test their solutions within defined parameters agreed with the CBN.
Sandbox to support regulatory innovation
The CBN said its Regulatory Sandbox provides a controlled environment where innovators can test emerging technologies while engaging directly with regulators throughout the process.
The programme is intended to help the apex bank deepen its understanding of new technologies and business models while identifying potential risks and opportunities associated with their deployment within Nigeria’s financial system.
According to the CBN, the second cohort reflects its commitment to developing a transparent, proportionate and risk-based regulatory framework that supports innovation without compromising monetary and financial stability.
The regulator added that insights generated through supervised testing would inform the development and refinement of regulatory and supervisory frameworks for Nigeria’s evolving digital financial ecosystem.
Applicants to undergo risk assessment
Applications will be assessed against several criteria, including the level of innovation, readiness for controlled live testing, potential benefits to consumers and the financial market, governance structures, risk management capabilities and the suitability of proposed testing plans.
Successful participants will conduct testing under agreed conditions, with safeguards covering consumer protection, operational resilience, cybersecurity and regulatory reporting.
The CBN, however, stressed that admission into the Regulatory Sandbox does not constitute a licence, authorisation or approval to conduct activities outside the scope and parameters of the approved testing programme.
The apex bank said the initiative is intended to facilitate responsible experimentation, strengthen engagement between regulators and innovators and support evidence-based policy development in line with its statutory mandate.
Eligible organisations seeking to participate in Cohort 2 are required to submit their applications through the CBN Regulatory Sandbox Portal before the August 31 deadline.
The dedicated VASP track is particularly significant as Nigeria’s financial ecosystem continues to evolve around virtual assets, stablecoins and digital payment infrastructure, increasing the need for regulatory frameworks that can accommodate innovation while addressing emerging compliance, consumer protection and financial stability risks.
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