CBN opens applications for second cohort of regulatory sandbox
The Central Bank of Nigeria (CBN) has opened applications for the second cohort of its Regulatory Sandbox Programme, aimed at promoting financial innovation while safeguarding the stability and integrity of Nigeria’s financial system.
The apex bank said the initiative reflects its commitment to maintaining a transparent, proportionate and risk-based regulatory environment that supports innovation without compromising monetary and financial stability.
According to the CBN, lessons and insights obtained from the supervised testing of emerging financial technologies will help strengthen its understanding of new innovations and inform the development of appropriate regulatory and supervisory frameworks for Nigeria’s rapidly evolving digital financial ecosystem.
The bank said applications for participation would be evaluated based on several criteria, including the degree of innovation, readiness for controlled live testing, potential benefits to consumers and the wider market, governance structures, risk-management capacity and the suitability of proposed testing plans.
Successful applicants will be permitted to conduct supervised tests within parameters agreed with the CBN.
The testing process will be subject to safeguards covering consumer protection, operational resilience, cybersecurity and regulatory reporting, the apex bank said.
The CBN, however, clarified that participation in the sandbox programme does not constitute a licence, authorisation or approval to conduct activities outside the specific testing parameters approved by the regulator.
It said the programme was designed to facilitate responsible experimentation, strengthen engagement between innovators and regulators, and support evidence-based policymaking in accordance with the bank’s statutory mandate.
Eligible organisations seeking to participate are required to submit their applications through the CBN Regulatory Sandbox Portal before the August 31 deadline.
The initiative is expected to provide fintechs and other eligible innovators with a controlled environment to test new products, services and business models while enabling the CBN to assess their potential risks and benefits before wider adoption.
