The Central Bank of Nigeria has opened applications for the second cohort of its Regulatory Sandbox Programme, introducing a dedicated pathway for virtual asset service providers. Applications will be accepted from August 12 to August 31, 2026.
The announcement was contained in a statement signed by Hakama Sidi Ali, Acting Director of the Corporate Communications and Investor Relations Department. The new cohort features two distinct tracks: the Virtual Asset Service Provider (VASP) Track and the Data Enabled Financial Services Track.
Focus of the Two Tracks
The VASP Track is designed for innovations involving virtual assets, stablecoins, payments, settlement, custody, wallets and related financial infrastructure that require supervised live testing. The Data Enabled Financial Services Track, which excludes VASPs, will support innovations that use secure digital infrastructure and permission-based data sharing to advance financial inclusion, payments, credit, risk management, operational efficiency and consumer outcomes.
The Central Bank said the second cohort underscores its commitment to a transparent, proportionate and risk-based regulatory approach that encourages innovation while protecting monetary and financial stability. Insights gained from supervised testing are expected to deepen the bank’s understanding of emerging technologies and help shape future regulatory frameworks.
Musa Jimoh, Director of the Payments System Policy Department, noted that financial innovation continues to change how individuals and businesses access services. “The introduction of dedicated tracks for Virtual Asset Service Providers and data-enabled financial services reflects the evolving nature of financial innovation and our commitment to ensuring that Nigeria’s regulatory environment continues to support responsible, transparent innovation that is aligned with the long-term development of our financial system,” he said.
Assessment and Testing Conditions
Applications will be evaluated on the level of innovation, readiness for controlled live testing, potential benefits to consumers or the market, governance arrangements, risk management capability and the suitability of the proposed testing plan. Successful participants will conduct supervised testing within clearly defined parameters agreed with the CBN. These will include safeguards covering consumer protection, operational resilience, cybersecurity and regulatory reporting.
The apex bank emphasised that participation in the sandbox does not amount to a licence, authorisation or approval to operate outside the approved testing parameters. Interested parties can submit applications through the CBN Regulatory Sandbox Portal at https://sandbox.cbn.gov.ng before the deadline.
Broader Regulatory Context
The launch follows a series of recent measures affecting the digital asset sector. Last month, President Bola Tinubu signed the Presidential Executive Order on Virtual Assets Coordination, 2026, establishing a framework to coordinate the regulation of cryptocurrencies, stablecoins, tokenised assets and other digital assets across government agencies.
Last week, the Nigeria Revenue Service issued new Guidelines on the Taxation of Virtual Assets covering companies, individual taxpayers, VASPs, peer-to-peer marketplace operators and other participants in the digital asset ecosystem. Earlier, the Securities and Exchange Commission intensified efforts under its Accelerated Regulatory Incubation Programme, granting approval in principle to seven virtual asset companies and bringing the total to nine.
The CBN first launched its Regulatory Sandbox in 2022, with applications for the initial cohort opening in December that year. The programme became operational on January 25, 2023, providing fintech innovators with a controlled environment to test products under regulatory supervision.
For Nigerian businesses and crypto operators, the second sandbox cohort offers a clearer route to test digital asset products under Central Bank oversight, signalling a continued shift toward formal integration rather than outright restriction.
