• Invites fintechs, financial institutions, technology firms, foreign companies
The Central Bank of Nigeria (CBN) has opened its doors to a new round of financial technology experiments, inviting Virtual Asset Service Providers, fintech firms, financial institutions and other innovators to participate in the second cohort of its Regulatory Sandbox Programme.
The programme will give selected companies the opportunity to test emerging financial products—including stablecoins, virtual assets, digital wallets, payment and settlement systems and tokenisation solutions—under the supervision of the apex bank.
In its call for applications, the CBN said eligible innovators, financial institutions, Virtual Asset Service Providers, financial technology companies, technology companies and other qualified entities could apply for Cohort 2.
Applications open on August 12, 2026, and close on August 31, 2026.
The initiative comes as technology continues to reshape payments and financial services, presenting regulators with the challenge of encouraging innovation while keeping risks to consumers and the wider financial system under control.
Two Tracks for Innovators
Under the arrangement, the CBN has divided Cohort 2 into two testing tracks.
The first, known as the Virtual Asset Service Provider Track, is designed for innovations involving virtual assets, stablecoins, payments, settlements, custody, wallets and related financial infrastructure.
Companies admitted under this category will be allowed to carry out controlled live testing under enhanced supervisory oversight.
The second, the Data-Enabled Financial Services Track, will focus on non-VASP innovations that use secure digital infrastructure and permission-based data sharing.
According to the CBN, such innovations should be capable of improving financial inclusion, payments, credit, risk management, consumer outcomes or the overall efficiency of Nigeria’s financial system.
At the heart of the programme is a straightforward idea: allow promising financial innovations to be tested in a controlled environment before they are exposed to the wider market.
The CBN said participants would be able to test financial products, services, business models and enabling technologies under its supervision.
But innovation will not be allowed to come at the expense of the financial system. The bank said the sandbox is intended to support responsible innovation while safeguarding financial stability, consumer protection, monetary sovereignty, market integrity and the safety and resilience of Nigeria’s payments and financial services ecosystem.
Admission Not Automatic
Not every company that applies will make the cut.
The CBN made clear that Cohort 2 would admit only a limited number of participants, reflecting the bank’s capacity to supervise controlled live testing.
Meeting the eligibility conditions will therefore not automatically translate into admission. The bank may take fewer participants depending on assessment outcomes and available supervisory capacity.
The programme will be administered by the CBN’s Payments System Policy Department or any other department designated by the bank.
Foreign Companies Can Apply
The application window is not restricted to Nigerian fintech firms.
CBN-regulated institutions are eligible, alongside Virtual Asset Service Providers and companies developing stablecoins, payment and settlement solutions, custody services, wallets, tokenisation and related financial infrastructure.
Other technology companies and Nigerian incorporated entities developing innovative financial products, services, business models or infrastructure can also apply.
Foreign incorporated companies are equally eligible where their innovations can be lawfully deployed in Nigeria and they satisfy the applicable sandbox entry requirements.
CBN Sets Tough Screening Requirements
Applicants will, however, have to do more than present an interesting idea.
They must provide details of the proposed innovation, business model, testing plan, target market, expected outcomes and the regulatory path they intend to follow after leaving the sandbox.
Depending on the nature of the application, companies will also be expected to submit corporate and regulatory information, ownership and governance details, product and technology documentation and evidence of their financial, technical and operational capacity.
The documentation extends to risk assessments, consumer protection and complaints-handling arrangements, cybersecurity, data protection and business continuity.
Applicants must also address Anti-Money Laundering, Countering the Financing of Terrorism and Counter-Proliferation Financing requirements, as well as provide clear testing plans, success criteria and exit arrangements.
Innovation, Market Benefit to Guide Selection
When applications close, the CBN will assess them on several fronts.
Beyond checking whether submissions are complete and applicants eligible, the bank will examine the degree of innovation involved, potential benefits to the market and whether the product is ready for controlled live testing.
Governance, risk management, compliance, consumer protection and technical capacity will also come under scrutiny.
Importantly, the regulator will consider the possible impact of each innovation on financial stability, monetary sovereignty, consumers, market integrity and Nigeria’s payments ecosystem.
Those that pass the screening will be formally notified and taken through onboarding before supervised live testing begins. They will also be required to execute a Sandbox Testing Agreement and comply with prescribed testing parameters, reporting obligations, success criteria and exit plans.
The CBN warned applicants to get their submissions right. Incomplete, misleading, inaccurate or non-compliant applications may not be processed, while the bank can request further documents, explanations, demonstrations or meetings during its assessment.
Applications are to be submitted through the CBN Regulatory Sandbox Portal before the August 31 deadline.
