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The Central Bank of Nigeria (CBN) has opened applications for the second cohort of its Regulatory Sandbox Programme, introducing a new dual-track framework to support responsible innovation in virtual assets and data-enabled financial services.
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The latest testing window is designed to give eligible fintech companies and other innovators an opportunity to test new financial products, services, business models and technologies under controlled regulatory supervision, while helping the apex bank balance innovation with financial stability, consumer protection and market integrity.
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Applications for Cohort 2 open on August 12, 2026, and close on August 31, 2026.
CBN Introduces Two Dedicated Innovation Tracks
Under the new structure, the Regulatory Sandbox will operate through two specialised tracks: the Virtual Asset Service Provider (VASP) Track and the Data-Enabled Financial Services Track.
The VASP Track is designed for innovative solutions involving virtual assets, stablecoins, payments, settlement, custody, wallets and related financial infrastructure that require supervised live testing.
The Data-Enabled Financial Services Track, which excludes VASPs, 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 the separation of the tracks reflects the increasingly diverse nature of financial technology and allows innovations with different risk profiles to receive more targeted regulatory attention.
Sandbox to Support Responsible Fintech Innovation
According to the apex bank, the Regulatory Sandbox provides a controlled environment where eligible participants can test innovative solutions under CBN supervision.
The arrangement is also intended to create a structured channel through which innovators and regulators can engage during the testing process.
Through supervised experimentation, the CBN expects to deepen its understanding of emerging technologies while allowing innovators to identify and address regulatory, operational and consumer risks before wider deployment.
The bank said the launch of the second cohort demonstrates its commitment to establishing a transparent, proportionate and risk-based regulatory environment capable of supporting innovation without compromising monetary and financial stability.
CBN Seeks Lessons for Digital Finance Regulation
The apex bank said insights generated from supervised testing will contribute to its understanding of emerging technologies and inform the continued development of regulatory and supervisory frameworks for Nigeria’s evolving digital financial ecosystem.
The Director of the Payments System Policy Department, CBN, Musa Jimoh, said financial innovation was transforming how individuals and businesses access and use financial services.
Jimoh said the CBN Regulatory Sandbox, powered by technology in partnership with EMTECH, provides a structured mechanism for regulators and innovators to test promising solutions while maintaining safeguards for consumers and the broader financial system.
He said the introduction of dedicated tracks for VASPs and data-enabled financial services demonstrates the CBN’s effort to ensure that Nigeria’s regulatory environment keeps pace with financial technology developments.
Who Can Apply for the CBN Sandbox?
The CBN encouraged eligible organisations whose proposed innovations fall within the scope of the programme to submit applications before the August 31 deadline.
Applications will be assessed against several criteria, including:
- The level of innovation involved;
- Readiness for controlled live testing;
- Potential benefits to consumers or the market;
- Governance arrangements;
- Risk management capabilities; and
- The suitability of the proposed testing plan.
The assessment framework is intended to ensure that solutions entering the Sandbox have sufficient maturity to undergo controlled testing while maintaining appropriate safeguards.
Consumer Protection and Cybersecurity Remain Central
Successful participants will undertake supervised testing within parameters agreed with the CBN.
The testing framework will include safeguards covering consumer protection, operational resilience, cybersecurity and regulatory reporting.
This approach is particularly important as financial institutions and fintech companies increasingly rely on digital infrastructure, data-sharing arrangements, artificial intelligence, virtual assets and other emerging technologies.
The CBN’s framework seeks to ensure that technological experimentation does not expose consumers or the wider financial system to unacceptable risks.
Sandbox Participation Is Not a Banking Licence
The CBN stressed that admission into the Regulatory Sandbox does not constitute a licence, authorisation or approval to operate outside the specific testing parameters approved by the regulator.
Participants will therefore be required to remain within the agreed scope of their supervised testing and comply with applicable safeguards and reporting requirements.
The bank said the Sandbox is primarily intended to facilitate responsible experimentation, strengthen regulatory engagement and generate evidence that can support future policy and regulatory development.
Nigeria’s Digital Finance Ecosystem Enters a New Regulatory Phase
The second cohort comes as Nigeria’s financial ecosystem continues to expand beyond conventional banking into fintech, digital payments, virtual assets, data-driven financial services and other technology-enabled models.
By creating dedicated regulatory pathways for emerging areas such as VASPs and data-enabled finance, the CBN is seeking to create room for innovation while maintaining oversight of risks that could affect consumers, financial institutions and market stability.
The new dual-track structure could therefore become an important testing ground for technologies and business models that may shape the next phase of Nigeria’s digital financial economy.
