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The Central Bank of Nigeria has opened applications for the second cohort of its Regulatory Sandbox Programme, introducing a new dual-track structure to support responsible innovation in virtual assets and data-enabled financial services. Applications open on 12 August 2026 and close on the 31st, the bank said in a statement signed by Acting Director of Corporate Communications and Investor Relations, Hakama Sidi Ali.

The programme will run under two dedicated tracks: the Virtual Asset Service Provider (VASP) Track, which will support innovations in virtual assets, stablecoins, payments, settlement, custody, wallets and related financial infrastructure requiring supervised live testing; and the Data Enabled Financial Services Track, which excludes VASPs and focuses on innovations that use secure digital infrastructure and permission based data sharing to improve financial inclusion, payments, credit, risk management, operational efficiency and consumer outcomes.

According to the CBN, the sandbox provides a controlled environment where eligible participants can test new financial products, services, business models and enabling technologies under regulatory supervision. The bank said the programme allows innovators and regulators to engage constructively during testing, supports regulatory learning and encourages responsible innovation that benefits consumers and the wider financial system.

The launch of Cohort 2, the CBN noted, reflects its commitment to a transparent, proportionate and risk-based regulatory environment that promotes innovation while safeguarding monetary and financial stability. Insights from supervised testing are expected to deepen regulatory understanding of emerging technologies and inform the development of Nigeria’s evolving digital finance regulatory framework.

Commenting on the launch, Musa Jimoh, Director of the Payments System Policy Department, said that financial innovation continues to transform how individuals and businesses access and use financial services. He said the sandbox, powered by technology in partnership with EMTECH, enables innovators and regulators to engage in a structured and collaborative manner, allowing promising solutions to be tested responsibly while maintaining safeguards for consumers and the financial system. 

Jimoh added that the introduction of dedicated tracks for VASPs and data-enabled financial services reflects the changing nature of financial innovation and the CBN’s commitment to ensuring Nigeria’s regulatory environment supports responsible, transparent innovation aligned with long-term financial system development.

The CBN encouraged eligible organisations to apply through the CBN Regulatory Sandbox Portal before the deadline. Applications will be assessed on the level of innovation, readiness for controlled live testing, potential consumer or market benefit, governance arrangements, risk management capability and suitability of the proposed testing plan.

Successful participants will undertake supervised testing within parameters agreed with the CBN, including safeguards for consumer protection, operational resilience, cybersecurity and regulatory reporting. The bank stressed that participation in the sandbox does not constitute a licence or approval to operate outside the defined testing conditions. It said the initiative is intended to facilitate responsible experimentation, strengthen regulatory engagement, and support evidence-based policy development in line with its statutory mandate.

The statement reaffirmed the CBN’s commitment to fostering an innovative, resilient and inclusive financial ecosystem that supports sustainable economic growth while maintaining the safety, soundness and integrity of Nigeria’s financial system.