CBN Opens Second Regulatory Sandbox for Fintech and Virtual Asset Innovations

The Central Bank of Nigeria (CBN) has opened applications for the second cohort of its Regulatory Sandbox Programme, creating dedicated testing tracks for virtual asset businesses and data-driven financial innovations.
The move signals a renewed push by the apex bank to encourage financial technology innovation while strengthening consumer protection, financial stability and market integrity.
Sidi-Ali, Hakama, Acting. Director, Corporate Communications and Investor Relations Department of  the CBN, said the Cohort 2 is open to eligible innovators, financial institutions, Virtual Asset Service Providers (VASPs), fintech companies and technology companies seeking to test innovative financial products, services, business models and enabling technologies under regulatory supervision.
Two Tracks for Emerging Financial Technologies
The new cohort introduces two dedicated testing tracks.
The first is the Virtual Asset Service Provider (VASP) Track, designed to support innovative solutions involving virtual assets, stablecoins, payments, settlements, custody, wallets and related financial infrastructure that require supervised live testing.
The second is the Data-Enabled Financial Services (Non-VASP) Track, which focuses 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 introduction of the two tracks places emerging digital financial technologies within a structured regulatory testing environment rather than allowing potentially high-risk innovations to develop entirely outside regulatory oversight.
CBN Creates Controlled Environment for Innovation
The CBN said its Regulatory Sandbox provides a controlled environment where eligible participants can test innovative products, services, business models and technologies under the supervision of the apex bank.
The arrangement allows regulators and innovators to engage throughout the testing process, enabling the CBN to learn from emerging technologies while encouraging responsible innovation capable of delivering benefits to consumers and the wider financial system.
The apex bank said the launch of Cohort 2 reinforces its commitment to a transparent, proportionate and risk-based regulatory environment that supports innovation without compromising monetary and financial stability.
It added that lessons generated through supervised testing would help deepen its understanding of emerging technologies and contribute to the development of regulatory and supervisory frameworks for Nigeria’s evolving digital financial ecosystem.
Who Can Apply?
The programme is open to organisations whose proposed innovations fall within the scope of the Regulatory Sandbox.
However, admission will not be automatic.
The CBN said applications will be assessed against several criteria, including the level of innovation, 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.
Successful applicants will conduct supervised testing within clearly defined parameters agreed with the CBN.
The testing process will include safeguards covering consumer protection, operational resilience, cybersecurity and regulatory reporting, reflecting the regulator’s emphasis on balancing technological innovation with financial-system safety.
Sandbox Entry Is Not a Licence
The CBN has also drawn a clear line between participation in the sandbox and obtaining regulatory approval to operate as a financial institution or service provider.
It stressed that participation in the Regulatory Sandbox does not constitute a licence, authorisation or approval to operate outside the approved testing parameters.
Rather, the sandbox is intended to provide a controlled platform for experimentation, improve regulatory engagement and support evidence-based policymaking in line with the CBN’s statutory mandate.
This distinction is particularly important for companies operating in emerging areas such as virtual assets, stablecoins, digital wallets and other technology-enabled financial services.
Application Window Opens August 12
The CBN said 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 programme ultimately seeks to create a balance between innovation and regulation by allowing promising technologies to be tested under controlled conditions before wider deployment.
For Nigeria’s rapidly changing digital financial ecosystem, the second cohort could provide a structured pathway for innovators to demonstrate the viability, risks and consumer benefits of new financial technologies while giving the CBN practical regulatory insights.
The apex bank reiterated its commitment to building an innovative, resilient and inclusive financial ecosystem capable of supporting sustainable economic growth while preserving the safety, soundness and integrity of Nigeria’s financial system.   CBN opens applications for Cohort 2 of its Regulatory Sandbox, targeting virtual asset providers and data-driven financial innovations.