Nigeria’s digital financial landscape is entering another phase of experimentation as the Central Bank of Nigeria opens applications for the second cohort of its Regulatory Sandbox Programme, creating dedicated testing pathways for virtual asset businesses and data-driven financial innovations.
Applications opened on August 12, 2026, and eligible organisations have until August 31, 2026, to submit their proposals through the CBN Regulatory Sandbox Portal.
Unlike a one-size-fits-all approach to emerging financial technologies, the new cohort is divided into two specialised tracks: the Virtual Asset Service Provider Track and the Data-Enabled Financial Services Track.
The Virtual Asset Service Provider, or VASP, Track is designed for innovations involving virtual assets, stablecoins, payments, settlement systems, custody, wallets and related financial infrastructure. Businesses developing such solutions will be able to undertake supervised live testing within parameters established by the apex bank.
The second pathway is aimed at financial solutions built around secure digital infrastructure and permission-based data sharing. The Data-Enabled Financial Services Track excludes VASPs and is intended for technologies capable of improving financial inclusion, payments, access to credit, risk management, operational efficiency and consumer outcomes.
At the heart of the programme is a controlled testing environment in which innovators can develop and test new financial products, services, business models and technologies while engaging directly with regulators.
The CBN said the arrangement will allow it to gain a deeper understanding of emerging technologies as they are tested in real-world conditions, while ensuring that innovation advances alongside safeguards for consumers and the wider financial system.
Musa Jimoh, Director of the CBN’s Payments System Policy Department, said the speed at which financial technology is evolving is reshaping how individuals and businesses access financial services.
He explained that the sandbox, powered by technology in partnership with EMTECH, gives regulators and innovators a structured setting to experiment with new solutions without removing the protections required for consumers and the financial system.
According to Jimoh, the decision to establish separate tracks for virtual asset providers and data-enabled financial services reflects the changing character of financial innovation and the CBN’s effort to create a regulatory environment that encourages responsible and transparent technological development.
For applicants, however, entry into the programme will depend on more than having a novel idea. The CBN will assess proposals according to their level of innovation, readiness for controlled live testing, expected benefits to consumers and the market, governance arrangements, risk-management capabilities and the suitability of the proposed testing plan.
Those selected will carry out supervised experiments under conditions agreed with the CBN. The testing framework will include requirements covering consumer protection, operational resilience, cybersecurity and regulatory reporting.
The central bank has also drawn a clear line between participation in the sandbox and regulatory authorisation. Admission into the programme does not constitute a licence, approval or authorisation to conduct activities outside the specific testing parameters approved by the CBN.
That distinction is particularly significant as new financial technologies continue to develop across Nigeria. The sandbox is intended not simply as a testing ground for companies, but as a mechanism through which the regulator can gather evidence, identify emerging risks and strengthen its understanding of technologies that could shape the country’s financial system.
The CBN said lessons generated through supervised testing could subsequently contribute to the development of future regulatory and supervisory frameworks as Nigeria’s digital financial ecosystem evolves.
The second cohort therefore represents a strategic drive to balance two priorities that increasingly intersect in Nigeria’s financial sector: creating room for technology-driven innovation and maintaining the safety, resilience and integrity of the financial system.
The initiative also signals the CBN’s movement towards what it described as a transparent, proportionate and risk-based regulatory framework, one that can accommodate new financial models while protecting monetary and financial stability.
For Nigerian innovators working across virtual assets, digital payments, data-enabled finance and related technologies, the programme provides a structured route to test ideas under regulatory supervision and generate evidence that could influence the next generation of financial policy.
Eligible organisations seeking to participate must complete their applications through the CBN Regulatory Sandbox Portal no later than August 31, 2026.
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