CBN Regulatory Sandbox Cohort 2

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.

Eligibility Criteria for the CBN Regulatory Sandbox Cohort 2

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

Cohort 2 Tracks

• The CBN is prioritising innovations aligned to two strategic regulatory focus areas, which together form the two tracks of Cohort 2.

VASP Track

• Virtual Asset & Stablecoin Financial Services

Non-VASP Track

• Data-Enabled Financial Services

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

Application Guidelines for the CBN Regulatory Sandbox Cohort 2

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.