CBN Launches Second Regulatory Sandbox for Fintech Innovations

The Central Bank of Nigeria (CBN) has launched applications for the second cohort of its Regulatory Sandbox Programme, which will run from August 12 to August 31, 2026. This cohort introduces two distinct tracks: the Virtual Asset Service Provider (VASP) Track and the Data-Enabled Financial Services Track.

The VASP Track will facilitate innovations related to virtual assets, stablecoins, payments, and other financial infrastructures requiring live testing under supervision. The Data-Enabled Financial Services Track will focus on solutions that enhance financial inclusion and operational efficiency through secure digital infrastructure and data sharing.

Musa Jimoh, Director of the CBN’s Payments System Policy Department, stated that the sandbox allows innovators and regulators to collaborate, ensuring consumer protection and financial system stability. Applications will be assessed based on innovation level, readiness for testing, governance, risk management, and proposed testing plans.

Successful applicants will conduct supervised tests with established safeguards, although admission does not equate to regulatory approval.