The Central Bank of Nigeria (CBN) has opened applications for the second cohort of its Regulatory Sandbox Programme, introducing dedicated tracks for virtual asset service providers and data-enabled financial services as Nigeria moves to strengthen oversight of its rapidly evolving digital finance ecosystem.
Applications for Cohort 2 open on August 12, 2026, and close on August 31, 2026.
The new programme structure is designed to allow eligible financial technology companies and other innovators to test new products, services, business models and technologies in a controlled environment under the supervision of the CBN.
The programme will operate through two dedicated tracks:
- Virtual Asset Service Provider (VASP) Track
- Data-Enabled Financial Services Track
The CBN said the dual-track approach reflects the changing nature of financial innovation and is intended to create a more targeted regulatory framework for emerging technologies.
CBN Opens Dedicated Virtual Asset Track
The VASP Track will support innovative solutions involving virtual assets, stablecoins, payments, settlement, custody, wallets and related financial infrastructure that require supervised live testing.
The move is significant for Nigeria’s digital finance industry as regulators globally seek to balance technological innovation with risks associated with digital assets, including consumer protection, operational resilience, financial crime and market stability.
Under the programme, eligible innovators will be able to test qualifying solutions within clearly defined parameters agreed with the CBN.
The second track, the Data-Enabled Financial Services Track, will exclude VASPs and focus on innovations that use secure digital infrastructure and permission-based data sharing.
According to the CBN, the track is intended to support solutions that can improve financial inclusion, payments, credit, risk management, operational efficiency and consumer outcomes.
CBN Seeks Controlled Testing of Financial Innovation
The CBN described its Regulatory Sandbox as a controlled environment where eligible participants can test innovative financial products, services, business models and enabling technologies under regulatory supervision.
The framework is designed to allow innovators and regulators to engage during the testing process, enabling the CBN to better understand emerging technologies while ensuring that risks to consumers and the wider financial system are appropriately managed.
The central bank said the launch of the second cohort reinforces its commitment to a transparent, proportionate and risk-based regulatory environment that supports innovation while protecting monetary and financial stability.
Insights generated through supervised testing will also contribute to the CBN’s understanding of emerging technologies and potentially inform the development of future regulatory and supervisory frameworks for Nigeria’s digital financial ecosystem.
CBN: Financial Innovation Is Reshaping Access to Finance
Commenting on the programme, Musa Jimoh, Director of the Payments System Policy Department at the CBN, said technological innovation was continuing to reshape how individuals and businesses access and use financial services.
He said the CBN Regulatory Sandbox, powered by technology in partnership with EMTECH, provides a structured mechanism through which regulators and innovators can collaborate on the testing of new financial solutions.
“The CBN Regulatory Sandbox, which is powered by technology in partnership with EMTECH, enables innovators and regulators to engage in a structured and collaborative manner, allowing promising solutions to be tested responsibly while maintaining appropriate safeguards for consumers and the financial system,” Jimoh said.
He added that the introduction of dedicated VASP and data-enabled financial services tracks reflected the evolution of financial innovation and the CBN’s objective of maintaining a regulatory environment that supports responsible and transparent innovation.
How CBN Will Assess Applications
The central bank said applications will be assessed against several criteria, including:
- The level of innovation involved;
- 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 tests within parameters agreed with the CBN.
These parameters will include safeguards covering consumer protection, operational resilience, cybersecurity and regulatory reporting.
The CBN stressed that admission into the Regulatory Sandbox should not be interpreted as a banking, payments, virtual asset or other financial-services licence.
“Participation in the Regulatory Sandbox does not constitute a licence, authorisation, or approval to operate outside the approved testing parameters,” the bank said.
Application Deadline
The CBN urged eligible organisations whose proposed innovations fall within the scope of either track to apply for Cohort 2.
Applications open August 12, 2026, and must be submitted by August 31, 2026 through the CBN Regulatory Sandbox Portal.
The programme is intended to support responsible experimentation while giving regulators evidence that can inform future policy and supervision.
For Nigeria’s financial technology sector, the second cohort could provide a structured route for emerging technologies — particularly virtual assets, stablecoins and data-driven financial services — to move from experimentation towards regulated market applications.
The CBN said the initiative ultimately supports its broader objective of building an innovative, resilient and inclusive financial ecosystem capable of supporting sustainable economic growth while maintaining the safety, soundness and integrity of Nigeria’s financial system.