CBN Opens Second Regulatory Sandbox Cohort for Fintech, Virtual Asset Innovations

The Central Bank of Nigeria (CBN) has opened applications for the second cohort of its Regulatory Sandbox Programme, allowing fintechs, financial institutions and technology companies to test innovative financial products and services under regulatory supervision.

The programme, which opened on August 12 and closes on August 31, is open to eligible innovators, financial institutions, virtual asset service providers (VASPs), fintech companies and technology firms, the apex bank said.

The second cohort introduces two dedicated testing tracks, the Virtual Asset Service Provider (VASP) Track and the Data-Enabled Financial Services (Non-VASP) Track.

The VASP track will support innovations in virtual assets, stablecoins, payments, settlement, custody, wallets, and related financial infrastructure requiring supervised live testing.

The non-VASP track will focus on innovations that use secure digital infrastructure and permission-based data sharing to improve financial inclusion, payments, credit, risk management, operational efficiency and consumer outcomes, the CBN said. 

According to the central bank, the sandbox provides a controlled environment for eligible participants to test innovative financial products, services, business models and enabling technologies under its supervision.

The CBN said the arrangement would allow it and participating innovators to engage throughout the testing process, supporting regulatory learning while encouraging responsible innovation.

Applicants will be assessed based on the level of innovation, readiness for controlled live testing, potential consumer or market benefits, governance arrangements, risk management capabilities and the suitability of their proposed testing plans.

Successful participants will conduct testing within parameters agreed with the CBN, with safeguards covering consumer protection, operational resilience, cybersecurity and regulatory reporting. 

The central bank, however, clarified that participation in the sandbox does not constitute a licence, authorisation or approval to operate outside the approved testing parameters.

“The Sandbox is intended to facilitate responsible experimentation, strengthen regulatory engagement, and support evidence-based policy development in line with the CBN’s statutory mandate,” the regulator said. 

The launch of the second cohort is part of the CBN’s efforts to develop what it described as a “transparent, proportionate, and risk-based regulatory environment” that supports innovation while preserving monetary and financial stability.

The regulator said insights from the supervised testing would help deepen its understanding of emerging technologies and inform the development of regulatory and supervisory frameworks for Nigeria’s evolving digital financial ecosystem.

Eligible organisations can submit their applications through the CBN Regulatory Sandbox Portal before the August 31 deadline.