The Central Bank of Nigeria, CBN, has announced the commencement of the second cohort of its Regulatory Sandbox Programme, inviting eligible innovators, financial institutions, Virtual Asset Service Providers, VASPs, fintech companies and technology firms to apply.
The initiative is designed to promote responsible innovation in Nigeria’s financial sector while maintaining high standards of consumer protection, financial stability and market integrity.
According to a statement by the Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, the Cohort 2 would feature two dedicated testing tracks aimed at supporting emerging technologies with the potential to strengthen the country’s financial system.
The two tracks are the Virtual Asset Service Provider, VASP, Track, which supports innovative solutions involving virtual assets, stablecoins, payments, settlement, custody, wallets and related financial infrastructure requiring supervised live testing; and the Data-Enabled Financial Services, Non-VASP, Track, which supports innovations leveraging secure digital infrastructure and permission-based data sharing to improve financial inclusion, payments, credit, risk management, operational efficiency and consumer outcomes.
According to the CBN, the Regulatory Sandbox provides a controlled environment where eligible participants can test innovative financial products, services, business models and enabling technologies under the supervision of the apex bank.
The programme also enables the CBN and participating innovators to engage throughout the testing process, facilitating regulatory learning while promoting responsible innovation that delivers benefits to consumers and the broader financial system.
The launch of Cohort 2, the bank said, underscores its commitment to developing a transparent, proportionate and risk-based regulatory environment that encourages innovation without compromising monetary and financial stability.
It added that insights generated from supervised testing would deepen the regulator’s understanding of emerging technologies and inform the continued development of regulatory and supervisory frameworks for Nigeria’s evolving digital financial ecosystem.
The CBN said eligible organisations would be assessed based on the level of innovation, readiness for controlled live testing, potential consumer and market benefits, governance arrangements, risk management capabilities and the suitability of their proposed testing plans.
Successful applicants will undertake supervised testing within clearly defined parameters agreed with the CBN, including safeguards for consumer protection, operational resilience, cybersecurity and regulatory reporting.
The apex bank, however, clarified that participation in the Regulatory Sandbox does not constitute a licence, authorisation or approval to operate outside the approved testing parameters.
It said the Sandbox was established to facilitate responsible experimentation, strengthen regulatory engagement and support evidence-based policy development in line with the CBN’s statutory mandate.
Applications for Cohort 2 opened on August 12, 2026, and will close on August 31, 2026.
Interested organisations are required to submit their applications through the CBN Regulatory Sandbox Portal before the deadline.
The CBN reaffirmed its commitment to fostering an innovative, resilient and inclusive financial ecosystem that supports sustainable economic growth while safeguarding the safety, soundness and integrity of Nigeria’s financial system.
