The Central Bank of Nigeria (CBN) has opened applications for the second cohort of its Regulatory Sandbox Programme, inviting banks, fintechs, virtual asset service providers (VASPs), financial institutions, and technology companies to test innovative financial solutions under regulatory supervision. Applications opened on August 12 and will close on August 31, giving eligible firms a limited window to submit their applications.
Programme Tracks for Cohort 2
The latest cohort features two major tracks. The Virtual Asset Service Provider (VASP) track targets companies developing or providing stablecoin services, payment and settlement solutions, digital asset custody, wallets, and related financial infrastructure. The second, known as the Data-Enabled Financial Services (Non-VASP) track, is aimed at companies using secure digital infrastructure and permission-based data sharing to improve payments, credit, risk management, operational efficiency, and financial inclusion.
The CBN said the sandbox will allow innovators and regulators to engage throughout the testing process, helping shape responsible innovation while protecting consumers and maintaining financial stability.
Regulatory Framework for Digital Assets
The sandbox comes as Nigeria moves to establish clearer regulatory boundaries around the rapidly expanding digital asset industry. Under the emerging framework, the CBN will oversee virtual assets used for payments, including stablecoins, payment and settlement infrastructure, custody, and wallet services. The Securities and Exchange Commission (SEC) will regulate digital assets that have characteristics of securities.
The CBN had already begun testing its supervisory approach through a stablecoin-related pilot involving selected fintech companies, including Flutterwave, Paystack, and Juicyway. The new sandbox complements the SEC’s Accelerated Regulatory Incubation Programme (ARIP), which has admitted digital asset companies for supervised regulatory testing.
Executive Order and Market Size
The development follows President Bola Tinubu’s July 18 Executive Order establishing a harmonised regulatory framework for virtual assets through a Virtual Asset Council chaired by the CBN. The Nigeria Revenue Service (NRS) and SEC serve as vice-chairs, while the Nigerian Financial Intelligence Unit and Office of the National Security Adviser are also members. The framework is intended to close regulatory gaps, strengthen anti-money laundering measures, improve consumer protection, and tackle fraud.
Nigeria remains one of Africa’s biggest cryptocurrency markets. Chainalysis estimates that Nigerians transacted about $92.1 billion in cryptocurrency between July 2024 and June 2025, highlighting the enormous scale of the sector.
The CBN stressed that admission into the sandbox does not constitute a licence to operate outside approved testing parameters. Successful participants will be expected to meet safeguards covering consumer protection, cybersecurity, operational resilience, and regulatory reporting.
For eligible crypto and fintech companies, the August 31 deadline marks a significant opportunity to test their products within Nigeria’s emerging regulated digital finance ecosystem.
