CBN deepens fintech regulation with second sandbox cohort

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The Central Bank of Nigeria is opening a fresh testing window for financial technology companies and other innovators as it seeks to balance rapid digital innovation with financial stability, consumer protection and market integrity.

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The apex bank announced on Tuesday the commencement of Cohort 2 of its Regulatory Sandbox Programme, inviting eligible innovators, financial institutions, Virtual Asset Service Providers, fintechs and technology companies to apply.

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Applications open on August 12, 2026, and close on August 31, 2026.

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The development is significant because the new cohort expands the scope of the CBN’s controlled testing environment to include virtual assets, stablecoins and related infrastructure, while also creating a separate track for data-driven financial services.

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The announcement was contained in a statement issued by the Acting Director, Corporate Communications and Investor Relations Department, Hakama Sidi-Ali.

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The statement read, “The Central Bank of Nigeria has announced the commencement of Cohort 2 of the CBN Regulatory Sandbox Programme, inviting eligible innovators, financial institutions, Virtual Asset Service Providers, financial technology companies, and technology companies to apply to participate.

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“Building on the CBN’s commitment to responsible innovation, Cohort 2 introduces two dedicated testing tracks to support emerging technologies with the potential to strengthen Nigeria’s financial system while upholding high standards of consumer protection, financial stability, and market integrity.”

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Under the new arrangement, applicants will be considered under two dedicated tracks.

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The first is the Virtual Asset Service Provider Track, which will cover innovative virtual asset, stablecoin, payment, settlement, custody, wallet and related financial infrastructure solutions requiring supervised live testing.

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The second is the Data-Enabled Financial Services (Non-VASP) Track, which is designed for innovations that use secure digital infrastructure and permission-based data sharing to improve financial inclusion, payments, credit, risk management, operational efficiency and consumer outcomes.

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The CBN said the second cohort was designed to ensure that emerging financial technologies could be tested in real market conditions without exposing consumers or the wider financial system to unnecessary risks.

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The Bank said, “The CBN Regulatory Sandbox provides a controlled environment in which eligible participants may test innovative financial products, services, business models, and enabling technologies under the supervision of the Central Bank.

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“The programme enables the CBN and innovators to engage constructively throughout the testing process, supporting regulatory learning while encouraging responsible innovation that benefits consumers and the wider financial system.”

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The second cohort builds on the CBN’s earlier experiment with regulatory testing, which was launched to give fintech firms and other innovators an opportunity to test new products and business models under regulatory supervision before wider deployment.

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The Bank opened applications for the first cohort in December 2022 and closed the application window on February 1, 2023. The CBN reported that it received more than 1,000 applications by the time the window closed.

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The sandbox itself became operational in January 2023 and was designed to allow both CBN-licensed financial institutions and eligible non-regulated technology companies to test innovative financial solutions in a controlled environment.

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