The Central Bank of Nigeria (CBN) has opened applications for the second cohort of its Regulatory Sandbox Programme, creating dedicated testing channels for virtual asset businesses and data-enabled financial services as the apex bank seeks to accommodate emerging technologies within a more structured regulatory framework.
Applications opened on Wednesday, August 12, 2026, and will close on August 31, with the programme providing selected innovators an opportunity to test financial products, services, business models and technologies under the CBN’s supervision.
Under the new cohort, the CBN has established two dedicated tracks: the Virtual Asset Service Providers (VASP) Track and the Data-Enabled Financial Services Track.
CBN creates testing route for virtual asset businesses
The VASP Track is designed for innovations involving virtual assets, stablecoins, payments, settlement, custody, wallets and related financial infrastructure that require supervised live testing.
The decision to create a dedicated track for virtual asset-related innovations signals the CBN’s intention to engage with developments in the sector through controlled experimentation rather than leaving emerging business models outside the regulatory conversation.
For innovators, participation could provide an avenue to test products under defined regulatory parameters while giving the central bank first-hand insight into the risks and operating models associated with new financial technologies.
The second track will focus on data-enabled financial services, excluding VASPs.
It will cover solutions using secure digital infrastructure and permission-based data sharing to improve financial inclusion, payments, credit, risk management, operational efficiency and consumer outcomes.
From innovation to regulatory evidence
The CBN said the sandbox is intended to provide a controlled environment in which innovators and regulators can interact throughout the testing process.
Rather than granting immediate market approval to new technologies, the programme allows the regulator to observe how products operate under real-world conditions and use the findings to strengthen its supervisory approach.
The apex bank said lessons generated through supervised testing would improve its understanding of emerging technologies and contribute to the development of regulatory and supervisory frameworks for Nigeria’s digital financial ecosystem.
Musa Jimoh, director, Payments System Policy Department, CBN, said financial innovation was changing how individuals and businesses access and use financial services.
He said the sandbox, powered by technology in partnership with EMTECH, provides a structured platform for innovators and regulators to test promising solutions while maintaining safeguards for consumers and the wider financial system.
“The introduction of dedicated tracks for Virtual Asset Service Providers and data-enabled financial services reflects the evolving nature of financial innovation,” Jimoh said.
Start-ups face stricter entry requirements
The opening of the sandbox does not mean every applicant will be allowed to test its product.
The CBN said applications would be assessed on the degree of innovation, readiness for controlled live testing, potential consumer or market benefits, governance structures, risk-management capacity and the suitability of the proposed testing plan.
Successful applicants will operate within parameters agreed with the CBN and will be subject to safeguards covering consumer protection, operational resilience, cybersecurity and regulatory reporting.
The arrangement could also raise the standard for fintech companies seeking to move innovative products from development into the Nigerian financial market, particularly where the products involve customer funds, sensitive financial data or emerging digital-asset infrastructure.
Sandbox participation is not a licence
The CBN stressed that acceptance into the programme should not be interpreted as regulatory approval to conduct unrestricted financial activities.
Participation in the sandbox does not constitute a licence, authorisation or approval to operate outside the approved testing parameters.
This distinction is particularly important for virtual asset businesses and other fintech operators whose products could involve regulated payment, custody, settlement or financial activities.
The sandbox is instead intended to facilitate controlled experimentation while allowing the CBN to assess risks before determining the appropriate regulatory treatment of emerging business models.
