The Central Bank of Nigeria (CBN) has opened a new testing window for companies developing digital financial products, including virtual asset services, stablecoins, digital wallets and data-driven financial solutions.
The initiative is the second phase of the apex bank’s Regulatory Sandbox Programme, which allows financial technology companies to test new ideas with real customers under controlled conditions before such products are introduced more widely.
A statement from the CBN’s Acting Director Corporate Communications and Investor Relations Department Mrs Hakama Sidi Ali said applications for the new exercise will open on August 12 and close on August 31, 2026.
Unlike the first cohort, the latest programme has been divided into two separate areas to deal with different types of financial technology. One is specifically for Virtual Asset Service Providers (VASPs), while the other is for companies developing financial services that depend on the secure use of customer data. The move is coming at a time when technology is rapidly changing the financial sector, with Nigerians increasingly using digital platforms for payments, savings, lending and other financial transactions.
Through the VASP window, companies working on virtual assets and related services will have an opportunity to test products involving digital currencies, stablecoins, payment and settlement systems, custody arrangements and digital wallets.
The second window is targeted at businesses that are not VASPs but are using technology and authorised access to financial data to develop new ways of providing credit, payments, risk management and other financial services.
The CBN said the purpose of the sandbox is not to give companies automatic approval to operate as financial institutions. Rather, it provides a supervised environment where the regulator can observe how new products work, identify possible risks and determine what regulatory requirements may be necessary.
The programme also gives technology companies an opportunity to engage directly with regulators before taking their products to the wider market.
Speaking on the initiative, the Director of the CBN’s Payments System Policy Department, Musa Jimoh, said technological changes were creating new ways for individuals and businesses to use financial services.
He said the sandbox, developed with technology partner EMTECH, would enable the regulator to work with innovators while ensuring that customers and the financial system are protected. “Financial innovation is continuing to transform the way individuals and businesses access and use financial services,” Jimoh said.
He said the decision to create separate channels for virtual assets and data-based financial services was intended to ensure that regulation kept pace with changes in the financial industry.
For companies seeking admission, the CBN said it would consider several issues before allowing their products to be tested. These include how different the proposed solution is from existing products, whether it is ready for real-world testing, the possible benefits to customers and the market, the strength of the company’s management structure and its ability to identify and control risks.
Applicants will also have to present a clear plan showing how they intend to conduct their tests.
Companies admitted into the programme will operate within limits agreed with the CBN. Their activities will be monitored, with requirements covering customer protection, cybersecurity, business continuity and the submission of information to the regulator.
The apex bank, however, warned companies and investors not to interpret participation in the programme as a banking, payment or other financial services licence.
A company admitted into the sandbox will only be permitted to conduct activities covered by its approved testing arrangement. It cannot use its participation as permission to operate outside those limits.
The CBN said lessons from the exercise would be useful in helping it understand new technologies and decide how emerging financial services should be supervised in Nigeria. For consumers, the programme could provide an additional layer of protection as new digital financial products are tested under regulatory observation rather than being introduced into the market without prior assessment.
The CBN said it was seeking to create an environment where new financial ideas could develop while risks to customers and the economy were properly managed.
Eligible organisations interested in participating have been advised to submit their applications through the CBN Regulatory Sandbox Portal at https://sandbox.cbn.gov.ng before the August 31 deadline.
The initiative is expected to give technology companies a clearer route for developing new financial products while giving the regulator practical experience needed to keep Nigeria’s financial rules in step with developments in digital finance.