Nigeria's national regulatory sandbox
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Framework Will Accelerate Innovation, Strengthen Startup Growth and Enhance Nigeria’s Digital Economy

The National Information Technology Development Agency (NITDA) has called for deeper collaboration among government regulators to accelerate the establishment of Nigeria’s National Regulatory Sandbox, describing coordinated inter-agency engagement as essential to building an innovation-friendly regulatory environment that supports emerging technologies while safeguarding public interest.

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The call was made by the Director General of NITDA, Kashifu Inuwa Abdullahi, during the National Regulatory Sandbox Governance and Implementation Planning Workshop held in Abuja.

Represented by the National Coordinator of the Office for Nigerian Digital Innovation (ONDI), Ms. Victoria Fabunmi, Abdullahi said the initiative represents a significant milestone in Nigeria’s efforts to create a modern regulatory framework capable of supporting technological innovation, startup growth and sustainable digital economic development.

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NITDA Seeks Collective Regulatory Ownership

According to Abdullahi, the success of the National Regulatory Sandbox depends on regulators jointly developing and implementing a governance framework that balances innovation with regulatory oversight, consumer protection and public trust.

He noted that the workshop marks the transition from the design phase of the initiative to implementation, where participating regulatory agencies are expected to validate, refine and collectively adopt the proposed governance structure before nationwide deployment.

“The work completed so far provides a solid foundation, but the National Regulatory Sandbox can only achieve its objectives through collective ownership by all relevant regulatory institutions,” he said.

Months of Preparatory Work Laid the Foundation

The NITDA Director General disclosed that ONDI has spent several months preparing the groundwork for the initiative through extensive stakeholder consultations, ecosystem mapping, regulatory assessments and the development of a draft governance and implementation framework.

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He explained that these activities were designed to ensure the Sandbox reflects the realities of Nigeria’s innovation ecosystem while providing a practical framework for emerging technology regulation.

According to him, the Technical Working Group was deliberately established as a collaborative platform to harness the expertise, statutory mandates and regulatory experience of participating agencies.

Regulatory Differences Should Become Strategic Strengths

Abdullahi stressed that while government agencies possess different regulatory responsibilities, those differences should be viewed as complementary strengths capable of supporting a coordinated and adaptive regulatory framework.

He said the workshop provides an opportunity for regulators to critically review the proposed governance model, challenge underlying assumptions and incorporate practical recommendations that will make the framework more inclusive, effective and responsive to Nigeria’s rapidly evolving digital economy.

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He added that the engagement would also establish clear implementation pathways, strengthen institutional partnerships and identify priority actions required to operationalise the National Regulatory Sandbox.

Sandbox to Create Safe Environment for Innovation

Expressing confidence in the outcome of the workshop, Abdullahi said the initiative would help build a shared national vision for innovation regulation while creating an enabling environment where startups and innovators can safely develop, test and scale new technologies under appropriate regulatory supervision.

He commended participants for their commitment to strengthening Nigeria’s digital innovation ecosystem and urged them to contribute ideas that would produce a practical regulatory framework capable of driving sustainable economic growth and enhancing Nigeria’s global competitiveness.

Sandbox Designed as a Collaborative Innovation Platform

Speaking on the National Regulatory Sandbox implementation journey, Ms. Ojonoka Yusufu, Implementing Partner at Druve, described the initiative as a coordinated framework that enables innovators and regulators to collaborate in testing emerging technologies while ensuring compliance with existing laws and regulatory requirements.

According to her, the workshop was convened to build consensus among participating regulators, validate the Sandbox’s operating model, identify implementation gaps and agree on the roadmap for successful deployment.

“We do not have anything set in stone yet. The idea is to work together to build a common understanding and ensure that all participating regulators and stakeholders are aligned on the objectives and implementation of the National Regulatory Sandbox,” she said.

Nigeria’s Expanding Startup Ecosystem Requires Regulatory Innovation

Yusufu observed that Nigeria’s Information and Communications Technology (ICT) sector remains one of the country’s largest contributors to Gross Domestic Product (GDP), while the nation’s startup ecosystem continues to attract significant international investment.

She noted that Nigerian startups are increasingly expanding beyond financial technology into sectors such as healthcare, agriculture, mobility and other innovation-driven industries, making stronger regulatory coordination increasingly important.

According to her, the rapid evolution of emerging technologies requires regulators to adopt more agile and collaborative approaches capable of encouraging responsible innovation without compromising regulatory standards.

Nigeria Startup Act Provides Legal Foundation

Yusufu explained that the National Regulatory Sandbox is anchored on the Nigeria Startup Act, which provides the legal basis for promoting responsible innovation while improving Nigeria’s regulatory environment.

She described the Sandbox as a collaborative, multi-agency governance mechanism designed to complement existing regulatory institutions rather than replace them.

According to her, the initiative will provide innovators with a structured environment to test new products and technologies under regulatory guidance, helping government agencies respond more effectively to technological disruption while encouraging investment and entrepreneurship.

The National Regulatory Sandbox is expected to play a pivotal role in strengthening Nigeria’s innovation ecosystem by improving regulatory coordination, supporting startup development and positioning the country as one of Africa’s leading destinations for technology innovation.

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