—-Apex bank invites fintechs to apply for Cohort 2 of regulatory pilot.
—Regulator warns: ‘Participation is not a full banking licence.
The Central Bank of Nigeria (CBN) has opened applications for the second cohort of its Regulatory Sandbox programme, establishing a dedicated track for Virtual Asset Service Providers (VASPs).
The initiative allows VASPs to test products such as stablecoins, custody services and payment settlement solutions under the direct supervision of the apex bank. It marks a shift in the regulator’s approach to the digital economy, from cautious observation to active experimentation.
The sandbox provides a “safe space” where eligible financial institutions and fintech startups can test innovative business models and technologies without immediately meeting full-scale regulatory requirements, though testing will be conducted under strict oversight.
In a statement signed by Hakama Sidi‑Ali, the CBN’s Acting Director of Corporate Communications and Investor Relations, the bank said the application portal will open on August 12 and remain active until August 31, 2026.
Cohort 2 is divided into two streams:
• A stream for innovations involving virtual assets, stablecoins, wallets and custody infrastructure.
• A stream for data‑enabled financial services that leverage secure digital infrastructure and permission‑based data sharing to improve credit, risk management and financial inclusion.
“The launch of Cohort 2 reflects the CBN’s continued commitment to developing a transparent, proportionate and risk‑based regulatory environment,” the statement said. “Insights from supervised testing will help deepen regulatory understanding of emerging technologies and inform the development of Nigeria’s evolving digital financial ecosystem.”
The sandbox is supported by a technological partnership with EMTECH, a global fintech regulatory firm. Musa Jimoh, Director of the CBN’s Payments System Policy Department, said the collaboration allows for structured engagement between innovators and regulators.
“This platform enables promising solutions to be tested responsibly while maintaining appropriate safeguards for consumers and the financial system,” Jimoh said.
The CBN emphasised that the sandbox does not provide a “free pass.” Successful applicants must test their products within agreed parameters and meet mandatory safeguards covering cybersecurity, operational resilience and consumer protection. The bank added that participation does not constitute a licence or authorisation to operate beyond approved testing parameters.
Applications will be assessed on the level of innovation, readiness for live testing, potential market benefits and the adequacy of governance and risk‑management arrangements.
Economic analysts welcomed the move as a necessary step for Nigeria, one of the world’s fastest‑growing markets for digital assets. By providing a pathway for stablecoins and virtual asset providers to engage with the regulator, the CBN aims to mitigate risks such as money laundering and volatility while harnessing blockchain technology to lower payment costs and expand financial access.
Eligible organisations are encouraged to submit applications through the official CBN portal before the August 31 deadline.
