CBN Opens Second Cohort of Regulatory Sandbox Programme for Fintechs and Crypto Firms
Nigeria has opened the second round of its CBN Regulatory Sandbox Programme, giving virtual asset companies, fintechs, and financial technology firms a supervised space to test new products.
The Central Bank of Nigeria (CBN) announced that applications for this new round will open on August 12 and close on August 31, 2026. Companies interested in joining the CBN Regulatory Sandbox Programme must submit their applications within this window.
What the CBN Regulatory Sandbox Programme Covers
The programme has two main tracks. The first track focuses on Virtual Asset Service Providers, or VASPs. This track covers stablecoins, payment and settlement services, custody solutions, digital wallets, and related infrastructure.
The second track supports companies that are not VASPs but still use secure digital infrastructure. These firms rely on permission-based data sharing to improve payments, credit access, risk management, operational efficiency, and financial inclusion.
Who Regulates What in the New System
Under this new framework, the CBN will oversee virtual assets used specifically for payment-related activities. Meanwhile, the Securities and Exchange Commission (SEC) will continue regulating digital assets that function as securities. This division of labour aims to close regulatory gaps that previously left some digital finance activities unsupervised.
The CBN Regulatory Sandbox Programme builds on an earlier stablecoin supervisory pilot. That pilot involved major fintechs, including Flutterwave, Paystack, and Juicyway. The new sandbox will also work alongside the SEC’s Accelerated Regulatory Incubation Programme, which already admits digital asset companies into a supervised regulatory setting.
Companies Expected to Join the Sandbox
The CBN expects several types of companies to apply. These include stablecoin providers, crypto on- and off-ramp services, payment processors, settlement infrastructure operators, custody platforms, and wallet service providers.
This expansion follows President Bola Tinubu’s Executive Order from July 18. That order created the Virtual Asset Council, which the CBN chairs. The council coordinates virtual asset regulation across several government bodies. Its members include the SEC, the Nigeria Revenue Service, the Nigerian Financial Intelligence Unit, and the Office of the National Security Adviser.
Why This Matters for Nigeria’s Crypto Market
Nigeria ranks among Africa’s largest cryptocurrency markets. Chainalysis estimates that Nigerians transacted about $92.1 billion in cryptocurrencies between July 2024 and June 2025. Stablecoins increasingly play a role in these transactions, especially for payments and remittances sent home from abroad.
Given this scale, regulators want stronger oversight without stifling innovation. The CBN Regulatory Sandbox Programme offers a controlled way to test new financial products before they reach the wider public.
What Companies Need to Know Before Applying
The CBN made one point very clear. Joining the sandbox does not grant companies a licence to operate outside the approved testing rules. Successful applicants must still meet strict requirements. These cover consumer protection, cybersecurity, operational resilience, and regular regulatory reporting.
Companies that want to test new financial technology in Nigeria now have a clear path forward, but they must follow the rules closely from day one.
