The Central Bank of Nigeria (CBN) has opened applications for the second cohort of its Regulatory Sandbox Programme, creating dedicated testing tracks for virtual asset services and data-enabled financial innovations.

The development was contained in a press statement signed by the Acting Director, Corporate Communications and Investor Relations Department, Hakama Sidi-Ali, in which the apex bank invited eligible innovators, financial institutions, virtual asset service providers (VASPs), fintechs and technology companies to participate.

Applications for Cohort 2 opened yesterday and will close on August 31.

The new cohort introduces two testing 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 second, the data-enabled financial services (or Non-VASP) track, targets innovations using secure digital infrastructure and permission-based data sharing to improve financial inclusion, payments, credit, risk management, operational efficiency and consumer outcomes.

According to the statement, the CBN Regulatory Sandbox provides a controlled environment where eligible participants can test innovative financial products, services and business models, enabling technologies under its supervision.

The programme is also intended to allow the regulator and innovators to engage throughout the testing process, helping the CBN deepen its understanding of emerging technologies while promoting innovation that benefits consumers and the wider financial system.

The apex bank said the launch of the second cohort reflected its commitment to a “transparent, proportionate, and risk-based regulatory environment” that encourages innovation while protecting monetary and financial stability.

It said insights gathered from supervised testing would help deepen regulatory understanding of emerging technologies and support the development of regulatory and supervisory frameworks for Nigeria’s evolving digital financial ecosystem.

Applications will be assessed based on factors including 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 proposed testing plans.

Successful applicants will conduct supervised testing within parameters agreed with the CBN, with safeguards covering consumer protection, operational resilience, cybersecurity and regulatory reporting.

The CBN, however, stressed that participation in the sandbox does not amount to a licence, authorisation or approval to operate outside the approved testing parameters.

It said the programme was designed to “facilitate responsible experimentation, strengthen regulatory engagement, and support evidence-based policy development” in line with its statutory mandate.

Eligible organisations are required to submit their applications through the CBN Regulatory Sandbox Portal before the August 31 deadline.