Nigeria has launched a regulatory sandbox for virtual asset operators, fintechs, financial institutions, and technology companies, marking the latest step in the country’s push to coordinate oversight of the country’s fast-growing digital finance ecosystem.
The Central Bank of Nigeria (CBN) said on Tuesday that applications for Cohort 2 of its Regulatory Sandbox Programme will open on August 12 and close on August 31.
The new programme includes a Virtual Asset Service Provider (VASP) track for companies offering stablecoins, payment and settlement services, custody, wallets, and related financial infrastructure solutions. It also includes a second Data-Enabled Financial Services (Non-VASP) track for firms using secure digital infrastructure and permission-based data sharing to improve payments, credit, risk management, operational efficiency, and financial inclusion.
The sandbox marks Nigeria’s latest move to regulate the virtual asset industry. The CBN will now oversee virtual assets used for payments, including stablecoins, payment, settlement, custody, wallet management, and other transaction-based infrastructure services. The Nigerian Securities and Exchange Commission (SEC) will oversee digital assets that behave like securities.
The CBN began testing its supervisory approach in March with a pilot involving selected fintechs, including Flutterwave, Paystack, and Juicyway, to assess the stability of payment and cross-border transaction infrastructure linked to stablecoins under closer regulatory monitoring. With the new sandbox, the CBN now has a complementary testing framework alongside the SEC’s Accelerated Regulatory Incubation Programme (ARIP), which admitted nine digital asset-based investment companies in July.
The CBN regulatory sandbox is expected to focus on stablecoin providers, on- and off-ramp companies, payment processors, settlement infrastructure operators, custody platforms, wallet-service providers, and other financial infrastructure firms that support the movement, storage, and conversion of digital assets.
“The CBN Regulatory Sandbox provides a controlled environment in which eligible participants may test innovative financial products, services, business models, and enabling technologies under the supervision of the Central Bank,” Sidi-Ali Hakama, CBN’s Acting Director of Corporate Communications, said in a statement seen by TechCabal. “The programme enables the CBN and innovators to engage constructively throughout the testing process, supporting regulatory learning while encouraging responsible innovation that benefits consumers and the wider financial system.”
The move follows President Bola Tinubu’s July 18 Executive Order to establish a harmonised regulatory authority under the Virtual Asset Council, which the CBN now chairs. As part of that committee, the Nigeria Revenue Service (NRS)—which released a tax framework for virtual assets on August 3—and the SEC serve as vice-chairs. Nigerian Financial Intelligence Unit (NFIU) and the Office of the National Security Adviser (ONSA) serve as the other members of the council.