The Central Bank of Nigeria has opened applications for the second cohort of its Regulatory Sandbox Programme, introducing separate testing tracks for virtual asset services and data-driven financial innovations.

The second cohort will operate through two tracks: the Virtual Asset Service Provider Track and the Data-Enabled Financial Services Track.

The VASP Track will accommodate innovations involving virtual assets, stablecoins, payments, settlement, custody, wallets and other related financial infrastructure that require supervised live testing.

The Data-Enabled Financial Services Track, which excludes VASPs, will target solutions that leverage secure digital infrastructure and permission-based data sharing to improve financial inclusion, payments, credit access, risk management, operational efficiency and consumer outcomes.

The CBN said the sandbox provides a controlled environment where eligible firms can test new financial products, services, business models and technologies under regulatory supervision.

According to the apex bank, the programme allows innovators and regulators to engage during the testing process, enabling the CBN to better understand emerging technologies while ensuring that innovation develops within appropriate consumer and financial-system safeguards.

The launch of the second cohort, the bank said, reflects its move towards a transparent, proportionate and risk-based regulatory framework that supports financial innovation without compromising monetary and financial stability.

The CBN said lessons from supervised testing would also help shape future regulatory and supervisory frameworks as Nigeria’s digital financial ecosystem evolves.

Applications open on 12 August 2026, and close on 31 August 2026.

Director of the CBN’s Payments System Policy Department, Musa Jimoh, said the rapid pace of financial innovation was changing how individuals and businesses access financial services.

He said the sandbox, powered by technology in partnership with EMTECH, provides a structured environment for regulators and innovators to test new solutions while maintaining safeguards for consumers and the financial system.

Jimoh said the creation of dedicated tracks for VASPs and data-enabled financial services reflected the changing nature of financial innovation and the CBN’s effort to build a regulatory environment that supports responsible and transparent innovation.

The CBN said applications would be evaluated based on factors including the level of innovation, readiness for controlled live testing, potential benefits to consumers and the market, governance structures, risk-management capacity and the suitability of the proposed testing plan.

Successful applicants will conduct supervised tests within parameters agreed with the CBN. These will include safeguards covering consumer protection, operational resilience, cybersecurity and regulatory reporting.

The apex bank, however, stressed that admission into the sandbox does not amount to a licence, authorisation or approval to operate outside the approved testing parameters.

The programme is intended to support controlled experimentation, strengthen engagement between regulators and innovators, and generate evidence that can inform future policy and regulatory decisions.

Eligible organisations have been advised to submit their applications through the CBN Regulatory Sandbox Portal before the 31st August deadline.

The initiative comes as Nigeria’s financial system continues to adapt to emerging technologies, with the CBN seeking to balance innovation and greater digital financial inclusion with the need to preserve the safety, resilience and integrity of the financial system.