• Says initiative will shape regulatory frameworks amid evolving digital financial ecosystem, others •National Payment Stack records 26.55m transactions worth N1.4trn one year after launch by NIBBS James Emejo in Abuja and Nume Ekeghe in Lagos The Central Bank of Nigeria (CBN) yesterday announced it has opened the second cohort of its Regulatory Sandbox Programme, creating dedicated testing channels for virtual asset-related innovations and data-enabled financial services. The apex bank move seeks to balance financial technology development with stability and consumer protection. Under the new cohort, eligible innovators, financial institutions, Virtual Asset Service Providers (VASPs), fintechs and technology companies will be able to test new products, services, business models and enabling technologies within a controlled environment supervised by the central bank. The apex bank disclosed the development in a statement issued by its acting Director, Corporate Communications and Investor Relations Department, Mrs. Hakama Sidi Ali in Abuja. This came as the National Payment Stack (NPS), the country’s next-generation payment infrastructure, said it processed 26.55 million transactions valued at N1.4 trillion across 48 participating institutions, about one year after it was launched by the Nigeria Inter-Bank Settlement System (NIBSS) Plc. The sandbox initiative is expected to provide a structured pathway for emerging financial technologies to be tested under real-world conditions without exposing the wider financial system to unmanaged risks. The CBN further stated that the programme formed part of its broader commitment to building an innovative, resilient and inclusive financial ecosystem capable of supporting sustainable economic growth while preserving the safety, soundness and integrity of the nation’s financial system. The second cohort introduces two dedicated testing tracks – the Virtual Asset Service Provider (VASP) Track and the Data-Enabled Financial Services (Non-VASP) Track. The VASP Track will cater to innovations involving virtual assets, stablecoins, payments, settlement, custody, wallets and other related financial infrastructure requiring supervised live testing. On the other hand, the Data-Enabled Financial Services Track, will focus on innovations leveraging secure digital infrastructure and permission-based data sharing to advance financial inclusion, payments, credit, risk management, operational efficiency and consumer outcomes. According to Sidi-Alli, the regulatory sandbox is designed to enable innovators and the regulator to engage throughout the testing process, allowing both sides to learn from the practical application of emerging technologies. She said the approach would support regulatory learning while encouraging innovations capable of delivering tangible benefits to consumers and the broader financial system. Also, commenting on the launch, CBN Director, Payments System Policy Department, Mr. Musa Jimoh, said financial innovation was continuing to transform the way individuals and businesses access and use financial services. He said, “The CBN Regulatory Sandbox, which is powered by technology in partnership with EMTECH, enables innovators and regulators to engage in a structured and collaborative manner, allowing promising solutions to be tested responsibly while maintaining appropriate safeguards for consumers and the financial system. “The introduction of dedicated tracks for Virtual Asset Service Providers and data-enabled financial services reflects the evolving nature of financial innovation and our commitment to ensuring that Nigeria’s regulatory environment continues to support responsible, transparent innovation that is aligned with the long-term development of our financial system.” The central bank said the launch of the second cohort was consistent with its commitment to establishing a transparent, proportionate and risk-based regulatory environment that promotes innovation without compromising monetary and financial stability. The CBN further stated that lessons derived from supervised testing would deepen its understanding of emerging technologies and contribute to the development of regulatory and supervisory frameworks for evolving digital financial ecosystem. Under the programme, prospective participants will not be admitted solely on the basis of having a novel technology or business model. Rather, the central bank said applications would be assessed against several criteria, including the level of innovation, readiness for controlled live testing, potential benefits to consumers or the market, governance arrangements, risk management capacity and the suitability of the proposed testing plan. Successful applicants will s
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