Regulatory
Sandbox - Cohort 2Central Bank of Nigeria
Innovate responsibly. Test safely. Scale with confidence.
A secure, controlled testing environment where innovators, fintechs, financial institutions, and technology providers test new financial products and business models under the supervision of the Central Bank of Nigeria.
About
The Regulatory Sandbox supports the safe introduction of innovative financial solutions by allowing participants to conduct live tests under CBN oversight, in line with the Bank’s objectives to enhance innovation, promote financial inclusion, and strengthen consumer protection.
Test what does not yet fit the rules
The Sandbox lets innovators test products, services, and business models that require controlled live testing, while ensuring risks to consumers, the financial system, and market participants are appropriately managed.
A dedicated virtual asset track
The dedicated virtual asset and stablecoin track is intended to deepen regulatory learning, improve visibility into emerging business models, and support safe innovation within clearly defined risk parameters.
Objectives of the Sandbox
Through this Cohort, the CBN will:
Collaboration with innovators
Enhance collaboration with innovators to safely introduce new technologies into the financial system.
Expanded access
Promote solutions that expand access to digital financial services.
A secure ecosystem
Maintain a secure, efficient, and inclusive payments and financial ecosystem.
Virtual asset testing
Support controlled testing of virtual asset and stablecoin propositions that may involve payment use cases, fiat on/off-ramp arrangements, digital wallets, custody structures, token-based products, compliance technology, and related market infrastructure.
Evidence for policy
Generate evidence to inform future supervisory, policy, and licensing decisions in areas where innovation is evolving faster than traditional regulatory models.
Why the Sandbox
Sandboxes signal that regulators will engage constructively with innovation, generating evidence-based insight that shapes future supervisory approaches, policies, and licensing frameworks.
For innovators and firms
- Faster, more informed routes to market
- Early engagement with regulators
- Improved understanding of regulatory requirements
- Reduced uncertainty around novel business models
- Opportunities to validate products with real users
- Enhanced investor and stakeholder confidence
- Structured pathways toward compliance and licensing
For regulators
- Insight into emerging technologies
- Visibility of evolving market practices
- Early view of potential risks
- Evidence for proportionate, forward-looking rules
Cohort 2 Tracks
The CBN is prioritising innovations aligned to two strategic regulatory focus areas, which together form the two tracks of Cohort 2.
Virtual Asset & Stablecoin Financial Services
Supports digital assets that are fiat backed or have a payment, settlement, or store of value function. The product or service must support responsible innovation aligned to the Bank’s mandate of monetary sovereignty and financial system stability.
Data-Enabled Financial Services
Focused on innovations that leverage secure, permission-based data sharing and digital infrastructure to improve access, efficiency, risk management, and consumer outcomes within Nigeria’s financial system.
Emphasis is placed on solutions that advance financial inclusion, enable alternative data-driven credit assessment, reduce onboarding, transaction, or compliance costs, and improve trust, transparency, and consumer control over financial data.
Applications involving stablecoins, custody, wallet infrastructure, token issuance, or smart-contract-based arrangements should be accompanied by the relevant governance, technology, reserves, disclosure, and risk-control documentation required under the sandbox application questionnaire.
Eligibility
Applications are open to
- CBN-licensed institutions developing innovative financial or payments-related solutions
- Institutions licensed by other financial services regulators within Nigeria, where the proposed innovation intersects with payments, digital financial services, financial data usage, or other areas within the sandbox scope
- Institutions licensed by recognised financial services regulators outside Nigeria, where the innovation is adaptable to the Nigerian market and can satisfy applicable sandbox entry requirements
- Virtual Asset Service Providers (VASPs), including entities operating in stablecoin issuance, virtual asset payments, exchange services, custody, and related infrastructure
- Startups and technology companies without existing financial licences, provided the proposed solution is innovative and sufficiently developed for controlled live testing
All applicants must demonstrate
- The solution is ready for live testing in a controlled environment
- Inherent risks have been assessed and mitigated in accordance with sandbox guidelines
- Effective AML/CFT/CPF controls
- Appropriate consumer safeguards
- The technical ability to comply with reporting and incident-notification requirements during the sandbox period
How to Apply
All interested applicants must complete their registration and submission through the CBN Regulatory Sandbox portal.
Access the Portal
Applications are submitted through the Regulatory Sandbox portal, accessible through the CBN’s website.
Register & Upload
Complete the online application form and upload all required documentation, including corporate approvals, governance information, product details, and any mandatory annexures.
Assessment & Approval
Applications are assessed for completeness, eligibility, product readiness, risk management capability, and overall suitability for sandbox testing.
Onboarding
Successful applicants are formally notified and issued the next steps for onboarding, integration, and supervised testing.
Incomplete, misleading, or non-compliant submissions will not be processed and may be rejected from the CBN Regulatory Sandbox assessment process.
Testing Conditions & Safeguards
Approved participants test within clearly defined boundaries, including limits on user categories, transaction volumes, customer exposure, and test duration. Applicants must also demonstrate arrangements for:
Material incidents, including cyber incidents, fraud events, or cases of consumer harm, must be reported promptly in line with sandbox requirements.
Benefits
For innovators
- Regulatory engagement from the outset
- Access to a supervised testing environment
- Reduced uncertainty and regulatory risk
- Improved product credibility and trust
- Enhanced readiness for commercialisation
- Better understanding of compliance obligations
- Opportunity to demonstrate innovation at scale
For the ecosystem
- Increased financial inclusion
- Safer adoption of emerging technologies
- Evidence-based policy development
- Improved market integrity
- Enhanced consumer confidence
- More resilient financial infrastructure
Regulatory Coordination & Post-Sandbox Pathway
Participation in the Regulatory Sandbox is designed to support a structured transition from innovation testing to full regulatory compliance and, where applicable, licensing.
Information provided during the application and testing phases may be considered by the CBN in coordination with other relevant authorities, including agencies responsible for securities regulation, financial intelligence, tax administration, national security, and data protection, where appropriate.
For successful participants, particularly Virtual Asset Service Providers (VASPs), sandbox outcomes may inform the appropriate post-sandbox regulatory pathway, subject to compliance with all applicable legal, regulatory, prudential, conduct, and supervisory requirements, and the fulfilment of all conditions prescribed by the Central Bank of Nigeria.
Important to note
Admission into the Sandbox does not amount to a permanent licence or regulatory approval to operate beyond the approved testing parameters.
The CBN Regulatory Sandbox is distinct and separate from any other regulatory sandbox programmes. It covers stablecoins, payment tokens, and non-security digital assets that perform a payment, settlement, or store-of-value function, together with related payments and data-enabled innovations. Admission does not confer, and is not a substitute for, any other regulatory agency’s registration, authorisation, or approval.
Documents
The call for application, the governing framework, and the step-by-step portal guide. All open in a new tab.
Call for Application — Cohort 2
The official invitation to participate: tracks, scope, eligibility, and how to submit an expression of interest.
Framework for Regulatory Sandbox Operations
The operating framework governing the CBN Regulatory Sandbox — scope, admission, testing conditions, obligations, and exit.
Sandbox FSP User Guide
A practical walkthrough of the portal for financial service providers — registration, the application form, uploads, and submission.
FAQs
What is the CBN Regulatory Sandbox?
What are the two tracks available in Cohort 2?
Who can apply?
Can a startup without a financial services licence apply?
Does admission to the Sandbox mean I have a licence?
How do I know whether my solution belongs in the VASP or Non-VASP Track?
Ready to Apply?
The Central Bank of Nigeria remains committed to fostering a balanced and inclusive financial environment that encourages innovation across both virtual and non-virtual asset ecosystems, while safeguarding consumer protection and financial system stability.
Apply TodayFor further information, visit the CBN website or contact the CBN support team through the CBN Regulatory Sandbox portal.