CBN opens second test programme for virtual assets, financial innovations

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

Applications will open on August 12, 2026 and close on August 31, 2026, the apex bank said in a statement signed by the Acting Director, Corporate Communications and Investor Relations Department, Hakama Sidi Ali.

The second cohort will operate under two tracks: the Virtual Asset Service Provider (VASP) Track and the Data-Enabled Financial Services Track.

The VASP Track is designed for innovative solutions involving virtual assets, stablecoins, payments, settlement, custody, wallets and related financial infrastructure that require supervised live testing.

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

The CBN said the Regulatory Sandbox provides a controlled environment where eligible organisations can test innovative financial products, services, business models and technologies under the bank’s supervision. It added that the programme allows innovators and regulators to work together during testing, helping the CBN gain a better understanding of emerging technologies while promoting responsible innovation.

According to the apex bank, the launch of the second cohort is part of its efforts to maintain a transparent, proportionate and risk-based regulatory framework that encourages innovation without compromising monetary and financial stability.

The CBN said lessons from supervised testing would also help shape future regulatory and supervisory frameworks as Nigeria’s digital financial ecosystem continues to evolve.

Commenting on the programme, the Director of the Payments System Policy Department, CBN, Musa Jimoh, said technological innovation was changing how individuals and businesses access financial services.

“The CBN Regulatory Sandbox, which is 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 appropriate safeguards for consumers and the financial system,” Jimoh said.

He said the introduction of separate tracks for virtual asset providers and data-enabled financial services reflected the changing nature of financial innovation.

“The introduction of dedicated tracks for Virtual Asset Service Providers and data-enabled financial services reflects the evolving nature of financial innovation and our commitment to ensuring that Nigeria’s regulatory environment continues to support responsible, transparent innovation that is aligned with the long-term development of our financial system,” he added.

The CBN said applications would be assessed based on factors including the level of innovation, readiness for controlled live testing, potential benefits to consumers and the market, governance arrangements, risk management capacity and the suitability of the proposed testing plan.

Successful applicants will conduct supervised testing within parameters agreed with the CBN.

The bank said the testing would include safeguards covering consumer protection, operational resilience, cybersecurity and regulatory reporting.

However, it warned that participation in the Regulatory Sandbox does not amount to a licence, authorisation or approval to operate outside the approved testing parameters.

The apex bank said the initiative was designed to support responsible experimentation, strengthen engagement between regulators and innovators and promote evidence-based policymaking.

Eligible organisations seeking to participate are required to submit their applications through the CBN Regulatory Sandbox Portal before the August 31 deadline.

The CBN said the programme would contribute to the development of a more innovative, resilient and inclusive financial system while preserving the safety, soundness and integrity of Nigeria’s financial sector.