The Central Bank of Nigeria (CBN) has opened applications for the second cohort of its Regulatory Sandbox Programme, inviting fintech companies, financial institutions, Virtual Asset Service Providers (VASPs), technology firms and other eligible innovators to test new financial products and technologies under regulatory supervision.

Applications for Cohort 2 opened on August 12, 2026, and will close on August 31, 2026.

The new cohort will operate through two dedicated testing tracks created to support emerging technologies and business models with the potential to strengthen Nigeria’s financial system.

Through the programme, eligible innovators can operate in a controlled testing environment for financial products, services, business models and enabling technologies while engaging directly with the regulator.

The first track, known as the Virtual Asset Service Provider (VASP) Track, targets innovations involving virtual assets, stablecoins, payments, settlement, custody, wallets and related financial infrastructure that require supervised live testing.

The second, the Data-Enabled Financial Services (Non-VASP) Track, is focused on innovations built around secure digital infrastructure and permission-based data sharing.

The CBN said solutions tested under the second track could contribute to improvements in financial inclusion, payments, credit access, risk management, operational efficiency and consumer outcomes.

Together, the two tracks provide Nigerian fintechs and technology companies with an avenue to develop and test solutions in parts of the financial system experiencing rapid technological change.

Eligible applicants include innovators, financial institutions, VASPs, fintech companies and technology firms whose proposed solutions fall within the programme’s scope.

Applications will be evaluated using several criteria, including the degree of innovation, preparedness for controlled live testing, potential benefits to consumers and the broader market, governance arrangements, risk management capacity and the suitability of the proposed testing plan.

Successful applicants will carry out supervised testing based on parameters agreed with the CBN.

The testing framework will include safeguards addressing consumer protection, operational resilience, cybersecurity and regulatory reporting.

The apex bank also clarified that participation in the Regulatory Sandbox should not be interpreted as a licence, authorisation or approval to operate outside the parameters approved for testing.

Rather, the programme is intended to give innovators room to experiment responsibly while enabling regulators to gain a better understanding of emerging technologies and evaluate their potential risks and benefits.

The CBN said information and insights generated during the testing process would contribute to the development of regulatory and supervisory frameworks for Nigeria’s evolving digital financial ecosystem.

For fintechs and other financial technology businesses, the programme offers an opportunity to test their solutions in a controlled environment, obtain regulatory feedback and gain a clearer understanding of the requirements for operating within Nigeria’s financial system.

Interested organisations are required to submit applications through the CBN Regulatory Sandbox Portal before the August 31, 2026 deadline.

The CBN said the launch of the second cohort underscores its commitment to establishing a transparent, proportionate and risk-based regulatory environment that promotes financial innovation while safeguarding monetary and financial stability.

The programme could offer an important pathway for Nigerian fintechs, VASPs and technology companies developing solutions across payments, digital finance, data-driven financial services and virtual assets to validate their business models under regulatory supervision.

Source: MSME Africa Online