ABUJA, Nigeria (XOL Africa) — The Central Bank of Nigeria has opened applications for the second cohort of its Regulatory Sandbox Programme, introducing dedicated testing tracks for virtual asset services and data-enabled financial innovations.
Applications opened Aug. 12 and will close Aug. 31, the central bank said in a statement signed Wednesday by Hakama Sidi-Ali, acting director of its Corporate Communications and Investor Relations Department.
The program invites eligible innovators, financial institutions, virtual asset service providers, fintech companies and technology firms to participate.
The first testing track is focused on virtual asset service providers and covers innovations involving virtual assets, stablecoins, payments, settlement, custody, wallets and related financial infrastructure requiring supervised live testing.
The second track, for non-virtual-asset innovations, targets data-enabled financial services using secure digital infrastructure and permission-based data sharing. The central bank said such innovations could support financial inclusion, payments, credit, risk management, operational efficiency and improved consumer outcomes.
The CBN said the sandbox provides a controlled environment in which participants can test innovative financial products, services, business models and enabling technologies under regulatory supervision.
The program also allows the regulator and participating companies to engage throughout the testing process, helping the central bank better understand emerging technologies while encouraging innovations that could benefit consumers and the broader financial system.
The central bank said the launch of the second cohort reflected its commitment to a “transparent, proportionate, and risk-based regulatory environment” that encourages innovation while protecting monetary and financial stability.
It said information gathered during supervised testing would help strengthen the regulator’s understanding of emerging technologies and contribute to the development of regulatory and supervisory frameworks for Nigeria’s evolving digital financial sector.
Applications will be assessed on factors including the level of innovation, readiness for controlled live testing, potential consumer or market benefits, governance arrangements, risk management capabilities and the suitability of proposed testing plans.
Successful applicants will conduct supervised testing within parameters agreed with the CBN, with safeguards covering consumer protection, operational resilience, cybersecurity and regulatory reporting.
The central bank cautioned that participation in the sandbox does not constitute a license, authorization or approval to operate outside the approved testing parameters.
The program is intended to “facilitate responsible experimentation, strengthen regulatory engagement, and support evidence-based policy development,” the CBN said.
Eligible organizations must submit applications through the CBN Regulatory Sandbox Portal by the Aug. 31 deadline.
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