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🇳🇬 Nigeria /Technology

CBN deepens fintech regulation with second sandbox cohort

From The Punch · () English

Summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • The Central Bank of Nigeria (CBN) is launching its second Regulatory Sandbox Programme to test fintech innovations.
  • The new cohort expands testing to include virtual assets, stablecoins, and data-driven financial services.
  • This initiative aims to balance rapid digital innovation with financial stability and consumer protection.

The Central Bank of Nigeria (CBN) is deepening its engagement with the financial technology sector by launching the second phase of its Regulatory Sandbox Programme. This initiative seeks to foster innovation while maintaining crucial safeguards for financial stability, consumer protection, and market integrity.

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.

— Hakama Sidi-AliActing Director, Corporate Communications and Investor Relations Department, CBN, announcing the second cohort of the Regulatory Sandbox Programme.

The CBN announced that applications for Cohort 2 will open on August 12, 2026, and close on August 31, 2026. This new phase significantly broadens the scope of the controlled testing environment. It will now accommodate innovations involving virtual assets, stablecoins, and related infrastructure, alongside a dedicated track for data-driven financial services.

According to a statement by Hakama Sidi-Ali, Acting Director of Corporate Communications and Investor Relations, the program's expansion reflects 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," she stated.

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.

— Hakama Sidi-AliActing Director, Corporate Communications and Investor Relations Department, CBN, explaining the goals of the expanded sandbox program.

The two tracks are the Virtual Asset Service Provider Track, covering innovations in virtual assets, stablecoins, payments, settlement, custody, and wallet solutions, and the Data-Enabled Financial Services (Non-VASP) Track, designed for innovations using secure digital infrastructure and permission-based data sharing to enhance financial inclusion, payments, credit, risk management, and consumer outcomes. The CBN emphasized that the sandbox provides a controlled environment for testing new products and services under supervision, allowing both the bank and innovators to engage constructively throughout the process.

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.

— Central Bank of NigeriaDescription of the CBN Regulatory Sandbox Programme's function.
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Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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