CBN opens Regulatory Sandbox Cohort 2: apply by August 31, two tracks available
By Aboki Forex —
The Central Bank of Nigeria has opened applications for Cohort 2 of its Regulatory Sandbox Programme. Applications opened on August 12 and will close on August 31, 2026.
Eligible firms include banks, fintechs, virtual asset service providers (VASPs), financial institutions and technology companies. The programme offers a controlled environment to test new financial products, services, business models and technologies while regulators study emerging risks and opportunities.
Two tracks for applicants
The latest cohort has two tracks. The Virtual Asset Service Provider (VASP) track targets companies developing stablecoin services, payment and settlement solutions, digital asset custody, wallets and related financial infrastructure.
The second track is the Data-Enabled Financial Services (Non-VASP) track. It is aimed at companies using secure digital infrastructure and permission-based data sharing to improve payments, credit, risk management, operational efficiency and financial inclusion, according to a CBN statement.
The CBN said the sandbox will allow innovators and regulators to interact throughout the testing process. That helps shape responsible innovation while protecting consumers and maintaining financial stability.
Regulatory backdrop and what admission means
The sandbox follows President Bola Tinubu's July 18 Executive Order creating a harmonised regulatory framework for virtual assets. The framework sets up a Virtual Asset Council chaired by the CBN, with the Nigeria Revenue Service and SEC as vice-chairs. The Nigerian Financial Intelligence Unit and Office of the National Security Adviser are also members.
Under the emerging structure, the CBN will oversee virtual assets used for payments, including stablecoins, payment and settlement infrastructure, custody and wallet services. The Securities and Exchange Commission will regulate digital assets with securities characteristics.
The CBN has already started testing its approach through a stablecoin-related pilot involving Flutterwave, Paystack and Juicyway. The new sandbox also complements the SEC's Accelerated Regulatory Incubation Programme, which has admitted digital asset companies for supervised testing, TechCabal reported.
The CBN stressed that admission into the sandbox does not constitute a licence to operate outside approved testing parameters. Successful participants must meet safeguards covering consumer protection, cybersecurity, operational resilience and regulatory reporting.
Scale of Nigeria's crypto market
Nigeria remains one of Africa's biggest cryptocurrency markets. Chainalysis estimates Nigerians transacted about $92.1 billion in cryptocurrency between July 2024 and June 2025, showing the sector's size.
For eligible crypto and fintech firms, the August 31 deadline is a clear chance to test products inside Nigeria's emerging regulated digital finance ecosystem. The sandbox gives businesses a formal route to innovate without falling outside supervisory oversight, and it gives regulators the visibility they need to build rules around a fast-growing market.