The Central Bank of Nigeria (CBN) has opened applications for the second cohort of its Regulatory Sandbox Programme, expanding the initiative to include virtual asset service providers (VASPs), stablecoin businesses and other emerging financial technology companies.
Applications for the new cohort open on August 12, 2026, and close on August 31, 2026. The programme is designed to allow innovators to test new financial products, services and technologies under the supervision of the apex bank before wider market deployment.
The second cohort introduces two dedicated testing tracks, which are the Virtual Asset Service Provider (VASP) Track and the Data-Enabled Financial Services (Non-VASP) Track.
The VASP Track covers virtual assets, stablecoins, payments, settlement, custody, wallets, and related financial infrastructure solutions that require supervised live testing.
The Data-Enabled Financial Services Track, meanwhile, targets non-VASP innovations that use secure digital infrastructure and permission-based data sharing to improve financial inclusion, payments, credit, risk management, operational efficiency and consumer outcomes.
According to the CBN, the sandbox will provide a controlled environment where innovators can test their products under regulatory oversight while allowing the regulator to better understand emerging technologies and their potential risks.
The move marks a significant expansion of the CBN’s approach to fintech regulation, particularly as virtual assets and stablecoins become relevant to payments, remittances and financial infrastructure in Nigeria.
The regulator said the programme is intended to support responsible innovation while maintaining consumer protection, financial stability and market integrity.
The CBN first opened applications for its Regulatory Sandbox in December 2022, receiving more than 1,000 applications before the window closed in February 2023.
The latest cohort therefore represents an attempt to create a more structured pathway for emerging financial technologies to be tested in real-market conditions without exposing consumers or the wider financial system to unnecessary risks.
For fintech and crypto startups, participation in the sandbox could also provide an opportunity to engage directly with the regulator as they develop products that may fall outside existing regulatory frameworks.
The expansion comes as Nigerian regulators increasingly seek to balance innovation with tighter oversight of the country’s rapidly evolving digital financial ecosystem.