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 towards a more coordinated regulatory framework for digital finance.
Applications for the second cohort will open on August 12, 2026, and close on August 31, 2026, according to a statement signed by Hakama Sidi Ali, Acting Director, Corporate Communications and Investor Relations Department at the CBN.
The new cohort will operate through two tracks: the Virtual Asset Service Provider (VASP) Track and the Data Enabled Financial Services Track.
The VASP Track will support innovations involving virtual assets, stablecoins, payments, settlement, custody, wallets and related financial infrastructure that require supervised live testing.
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The Data Enabled Financial Services Track, which excludes VASPs, will focus on innovations using secure digital infrastructure and permission-based data sharing to improve financial inclusion, payments, credit, risk management, operational efficiency and consumer outcomes.
What they are saying
The CBN said the second cohort reflects its commitment to a transparent, proportionate and risk-based regulatory environment that promotes innovation while safeguarding monetary and financial stability.
It added that insights generated from supervised testing would deepen its understanding of emerging technologies and inform the development of regulatory and supervisory frameworks for Nigeria’s evolving digital financial ecosystem.
Musa Jimoh, Director of the Payments System Policy Department at the CBN, said financial innovation is continuing to transform the way individuals and businesses access and use financial services.
- “The introduction of dedicated tracks for Virtual Asset Service Providers and data-enabled financial services reflects the evolving nature of financial innovation and our commitment to ensuring that Nigeria’s regulatory environment continues to support responsible, transparent innovation that is aligned with the long-term development of our financial system,” Jimoh said.
The CBN said applications will be assessed based on the level of innovation, readiness for controlled live testing, potential consumer or market benefit, governance arrangements, risk management capability and the suitability of the proposed testing plan.
Successful participants will undertake supervised testing within clearly defined parameters agreed with the CBN, including safeguards covering consumer protection, operational resilience, cybersecurity and regulatory reporting.
The apex bank stressed that participation in the Regulatory Sandbox does not constitute a licence, authorisation or approval to operate outside the approved testing parameters.
The CBN advised interested applicants to apply through its Regulatory Sandbox Portal at https://sandbox.cbn.gov.ng before the deadline.
Get up to speed
The latest announcement by the CBN adds to the series of series of actions and regulatory moves targeting the crypto industry.
- Just last month, President Bola Tinubu signed the Presidential Executive Order on Virtual Assets Coordination, 2026, establishing a new framework to coordinate the regulation of cryptocurrencies, stablecoins, tokenised assets, and other digital assets across government agencies.
- Last week, the Nigeria Revenue Service (NRS), also released new Guidelines on the Taxation of Virtual Assets targeting companies, individual taxpayers, Virtual Asset Service Providers (VASPs), peer-to-peer (P2P) marketplace operators, and other participants in Nigeria’s digital asset ecosystem.
- Before that, the Securities and Exchange Commission (SEC) had intensified efforts at granting approval in principle to crypto exchanges under its Accelerated Regulatory Incubation Programme (ARIP).
In the latest development under the SEC regulatory sandbox, seven virtual asset companies were granted an approval-in-principle, bringing the number to nine.
What you should know
The CBN’s Regulatory Sandbox was first launched in 2022, with applications for the first cohort opening in December that year. The sandbox became operational on January 25, 2023, providing fintech innovators with a controlled environment to test products and services under regulatory supervision.
The sandbox is designed to enable innovators to test financial products, services, business models and enabling technologies in a controlled environment while allowing the regulator to assess potential risks and implications before wider deployment.
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