Founders can now test crypto and data-driven fintech under new CBN sandbox

The Central Bank of Nigeria has opened applications for the second cohort of its Regulatory Sandbox Programme, introducing a new dual-track structure covering virtual asset services and data-enabled financial innovations. Applications open on 12 August 2026 and close on 31 August 2026.

The sandbox provides a controlled environment where eligible participants can test new financial products, services, business models, and enabling technologies under CBN regulatory supervision. It is open to both existing CBN licensees — financial institutions with fintech initiatives — and non-regulated local tech companies developing innovative financial solutions, according to the CBN Regulatory Sandbox Portal.

For Cohort 2, the programme introduces two distinct tracks. The Virtual Asset Service Provider (VASP) Track supports innovation in virtual assets, stablecoins, payments, settlement, custody, wallets, and related financial infrastructure that require supervised live testing. The Data Enabled Financial Services Track excludes VASPs and instead 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.

The announcement came in a press statement signed by Hakama Sidi Ali, Acting Director of Corporate Communications and Investor Relations, and was amplified by the @cenbank tweet citing the press release and sandbox registration link. Financial Nigeria summarised the statement: "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."

Eligibility criteria require products or services to be innovative with clear potential to improve accessibility, choices, efficiency, security, or quality in financial services; enhance risk management for Nigerian financial institutions; or open new financial and investment opportunities in the Nigerian economy. Applicants must demonstrate readiness for controlled live testing, including adequate risk assessment, limited transaction values or volumes for risk management, resources and expertise to support testing, and a viable business plan for deployment after exit, per the Framework for Regulatory Sandbox Operations.

The Payments System Management Department is responsible for issuing the framework, admitting participants, issuing Letters of Approval, and potentially granting Approvals-in-Principle for market deployment subject to licensing requirements. Participation in the sandbox does not constitute a licence or blanket approval to operate outside defined testing conditions. Successful participants will undertake supervised testing with agreed parameters and safeguards for consumer protection, operational resilience, cybersecurity, and regulatory reporting.

The current version of the Regulatory Sandbox Framework is dated September 2024, indicating an updated regulatory document that governs operations. CBN acknowledges receipt of applications within five working days and informs applicants of eligibility and approval 45 working days after the closure of the application window.

Cohort 1 applications closed on 1 February 2023, as noted in Paystack's guidance for startups: "Startups have until February 1, 2023 to apply to be in the first cohort of the Sandbox." The sandbox's testing scope remains primarily limited to payment products and services and other innovations that may not yet be covered by existing CBN regulations.

Applications for Cohort 2 must be submitted through the CBN Regulatory Sandbox Portal at sandbox.cbn.gov.ng. Applicants seeking clarification can contact sandbox@cbn.gov.ng, with enquiries addressed to the Director, Payments System Management Department at CBN headquarters in Abuja.