Digitnomics 
The Central Bank of Nigeria (CBN) has opened applications for the second cohort of its Regulatory Sandbox Programme, creating a supervised environment for fintech and digital-asset companies to test new financial products in Nigeria.
Applications opened on August 12 and will close on August 31, 2026.
The latest cohort is particularly significant because the CBN has specifically created a track for Virtual Asset Service Providers (VASPs), including startups working with stablecoins, digital wallets, custody, payments and settlement infrastructure.
The programme also includes a second track for Data-Enabled Financial Services, covering non-VASP innovations that use digital infrastructure and permission-based data sharing to improve areas such as financial inclusion, credit access, risk management and consumer services.
Why the new sandbox matters
Regulatory uncertainty has long been one of the biggest challenges facing companies developing new financial technologies in Nigeria.
The CBN’s sandbox provides these businesses with an opportunity to test their products under regulatory supervision before taking them to the wider market.
This is particularly important for startups working in areas such as stablecoins and virtual assets, where innovation has often moved faster than traditional regulatory frameworks.
Rather than operating entirely outside established financial structures, qualifying startups can use the sandbox to demonstrate how their products work, identify potential risks and receive regulatory feedback.
For founders, that could mean an opportunity to build products with a clearer understanding of the rules they will eventually need to meet.
A significant shift for digital assets
The inclusion of VASPs and stablecoin businesses is also noteworthy.
Digital assets have become increasingly relevant to payments, remittances, savings and cross-border transactions involving Nigerians. By specifically opening a regulatory pathway for businesses in this space, the CBN is signalling that these technologies require structured regulatory attention rather than being treated simply as an emerging niche.
The sandbox does not mean that every crypto or stablecoin product is automatically approved.
Instead, participating companies will operate within a controlled testing environment while the regulator assesses issues around consumer protection, financial stability, market integrity and other potential risks.
What fintech founders should know
For startups considering the programme, the opportunity goes beyond simply testing a product.
A successful sandbox experience could help companies understand regulatory expectations earlier in their development journey and potentially identify compliance challenges before committing significant resources to a full-scale launch.
The first CBN Regulatory Sandbox attracted more than 1,000 applications when the application window opened in 2022, highlighting the level of interest among financial innovators.
This second cohort comes at a time when Nigeria’s financial technology ecosystem is becoming increasingly diverse, with companies developing products around digital payments, alternative credit, data sharing, virtual assets and cross-border finance.
The next three weeks will therefore be important for startups looking to position themselves within Nigeria’s evolving financial regulatory landscape.
For consumers and the wider fintech ecosystem, the bigger question is whether the sandbox can help the country strike the right balance between encouraging financial innovation and protecting people who use these new products.
Applications for the second cohort close on August 31, 2026.
Digitnomics is a technology and economy publication covering the people, businesses, policies and innovations shaping Africa’s digital economy.
