Central Bank of Nigeria Launches Cohort 2 Regulatory Sandbox with Dedicated VASP Track

by Edward Aziegbe, Dispatch Reporter

ABUJA FCT, NIGERIA — The Central Bank of Nigeria (CBN) has announced the official commencement of Cohort 2 of its Regulatory Sandbox Programme, inviting financial technology companies, Virtual Asset Service Providers (VASPs), financial institutions, and technology firms to apply for live supervised testing.

According to a press statement released on August 11, 2026, by Mrs. Hakama Sidi-Ali, Acting Director of Corporate Communications and Investor Relations, the second cohort is structured to advance responsible financial innovation while safeguarding consumer protection, financial stability, and market integrity.

Dual Dedicated Testing Tracks: CBN Regulatory Sandbox Portal

To address distinct areas of financial technology, Cohort 2 introduces two specialized testing streams:

• Virtual Asset Service Provider (VASP) Track: Designed to support innovative virtual asset solutions, stablecoins, payment and settlement systems, custody services, wallets, and related digital financial infrastructure requiring supervised live testing.
• Data-Enabled Financial Services (Non-VASP) Track: Geared toward innovations leveraging secure digital infrastructure and permission-based data sharing to enhance financial inclusion, credit delivery, payments, risk management, and operational efficiency.

Operational Framework and Assessment Criteria

The regulatory sandbox provides a controlled testing environment wherein approved applicants can trial business models and technologies under direct CBN supervision. The regulator noted that insights gathered from the testing period will directly inform evidence-based policy and the ongoing development of Nigeria’s digital financial regulatory framework.

According to the press release, applications will be evaluated based on the following parameters:

• The level of innovation and readiness for live testing.
• Potential market and consumer benefits.
• Governance frameworks and risk management capabilities.
• The overall suitability of the proposed testing plan.

The CBN emphasized that selection for the sandbox environment does not constitute an operating license, authorization, or approval to conduct business outside the agreed testing parameters. Successful participants will operate under mandatory safeguards concerning cybersecurity, operational resilience, consumer protection, and regulatory reporting.

Similarly, in April this year, CBN launched a pilot scheme for Anti-Money Laundering (AML) for VASPs, although the scheme was not open for application as participants were selected by the apex bank.

Application Window and Submission Details

The application portal opens on 12 August 2026 and will close on 31 August 2026. Eligible organizations are directed to submit their applications through the official portal at https://sandbox.cbn.gov.ng.