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The Central Bank of Nigeria (CBN) introduced its fintech regulatory sandbox to provide fintech innovators with a controlled environment to live test their technologies under regulatory observation and minimal risk to users. However, seven months after the supposed launch date, there is still no clarity on when the first cohort of applicants will begin testing. The CBN and its infrastructure provider EMTECH have not commented on the program’s current status.
The situation has been further complicated by significant structural changes within the CBN, including the suspension of Godwin Emefiele as CBN governor and an investigation into the bank’s activities.
The fintech sandbox was designed to accommodate licensed and unlicensed individuals and organizations seeking to test their financial innovations. However, since the application process began in December 2022, the CBN has not disclosed the names of the first cohort of participants, leaving applicants uncertain about the program’s status.
Startups like Esusu Africa, focusing on financial inclusion in underserved areas, and digital lending platform Indicina, both advanced to the final stage of the application process but have not received any communication about the CBN’s final decision.
Iyin Aboyeji, founder of VC firm Future Africa, suggests that the lack of updates may indicate inactivity in the sandbox. In contrast to the CBN’s approach, the Nigerian Industry Innovation Sandbox, also known as the FSI-Sandbox, focuses on supporting startups with financial and non-monetary resources.
The CBN’s fintech sandbox aims to protect the public from potential harmful actors and undesirable competition. Participants have the opportunity to test their products or services in a live environment, even without fulfilling all the usual regulatory requirements.
The sandbox relies on web applications developed by Nigerian startup EMTECH, enabling access to the CBN’s APIs and facilitating regulatory reviews, compliance processes, and real-time risk monitoring.
Despite EMTECH’s involvement, there has been little disclosure about the sandbox’s progress or participants. Inquiries to the CBN regarding the status of the fintech regulatory sandbox have not received any responses, leaving the fintech community in Nigeria in uncertainty.
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