CBN Opens Applications for Regulatory Sandbox, Introduces Virtual Asset and Data Tracks

The Central Bank of Nigeria (CBN) has opened applications for the second cohort of its Regulatory Sandbox Programme, creating dedicated testing tracks for virtual assets and data-enabled financial services.

Applications opened on Tuesday and will close on August 31, 2026. The programme gives eligible innovators a controlled environment to test new financial products, services, business models and technologies under CBN supervision.

The apex bank said the new cohort will operate through two tracks: the Virtual Asset Service Provider (VASP) Track and the Data-Enabled Financial Services Track. The announcement was contained in a statement signed by CBN Acting Director of Corporate Communications and Investor Relations, Hakama Sidi Ali.

The VASP Track will cover innovations involving virtual assets, stablecoins, payments, settlement systems, custody services, digital wallets and other related financial infrastructure that require supervised live testing.

The Data-Enabled Financial Services Track, which excludes VASPs, will focus on solutions built around secure digital infrastructure and permission-based data sharing. The CBN said such innovations could improve financial inclusion, payments, access to credit, risk management, operational efficiency and consumer outcomes.

Musa Jimoh, Director of the CBN Payments System Policy Department, said financial innovation was changing how individuals and businesses access financial services. He said the sandbox, developed with technology partner EMTECH, would provide a structured setting for testing new solutions while maintaining safeguards for consumers and the financial system.

Applicants will be assessed based on factors including the level of innovation, readiness for controlled live testing, potential benefits to consumers and the market, governance and risk management arrangements, and the proposed testing plan.

Successful applicants will test their solutions under conditions agreed with the CBN and will be subject to safeguards covering consumer protection, operational resilience, cybersecurity and regulatory reporting. The central bank stressed that admission into the sandbox does not amount to a licence to operate outside the approved testing framework.

The CBN urged eligible organisations to submit their applications through the CBN Regulatory Sandbox Portal before the August 31 deadline, as the regulator seeks to encourage financial innovation while keeping emerging technologies within a supervised environment.