CBN opens applications for second cohort of regulatory sandbox programme

By Onu Okorie

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.
Applications for Cohort 2 will open on August 12, 2026, and close on August 31, 2026, as the apex bank seeks to promote responsible innovation while safeguarding consumer interests, financial stability and market integrity.
According to the CBN, the new cohort features two dedicated testing tracks designed to support emerging technologies capable of strengthening Nigeria’s financial system.
The first is the Virtual Asset Service Provider VASP Track, which will support innovative solutions involving virtual assets, stablecoins, payments, settlement, custody, wallets and related financial infrastructure requiring supervised live testing.
The second is the Data-Enabled Financial ServicesNon-VASP Track, which 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 its 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 is also designed to promote engagement between the CBN and innovators throughout the testing process, allowing the regulator to gain practical insights into emerging technologies while encouraging innovations that deliver benefits to consumers and the broader financial system.
The launch of the second cohort, the bank said, underscores its commitment to developing a transparent, proportionate and risk-based regulatory environment that supports innovation without compromising monetary and financial stability.
It added that lessons from supervised testing would help deepen the CBN’s understanding of emerging technologies and contribute to the development of regulatory and supervisory frameworks for Nigeria’s evolving digital financial ecosystem.
Eligible organisations will be assessed based on several criteria, including the level of innovation, readiness for controlled live testing, potential benefits to consumers and the market, governance arrangements, risk-management capacity and the suitability of their proposed testing plans.
Successful applicants will conduct supervised tests within clearly defined parameters agreed with the CBN. The testing will include safeguards covering consumer protection, operational resilience, cybersecurity and regulatory reporting.
The apex bank, however, stressed that participation in the Regulatory Sandbox does not amount to a licence, authorisation or approval to operate outside the approved testing parameters.
According to the CBN, the Sandbox is intended to facilitate responsible experimentation, strengthen engagement between innovators and regulators, and support evidence-based policy development in line with its statutory mandate.