The Central Bank of Nigeria (CBN) has opened applications for the second cohort of its Regulatory Sandbox Programme, officially inviting Virtual Asset Service Providers (VASPs), stablecoin startups, and data-driven fintechs to participate.

Applications opened on August 12 and will close on August 31, giving founders a three-week window to apply for the opportunity to test their products legally within Nigeria's financial ecosystem.

Two Tracks on Offer

The second cohort presents two main tracks: the Virtual Asset Service Provider (VASP) track and the Data-Enabled Financial Services (Non-VASP) track.

The VASP track is designed for companies working with virtual assets, stablecoins, payments, settlement, custody, wallets, and related financial infrastructure. These products handle real money in ways regulators have historically struggled to categorise. The sandbox provides a controlled environment for testing such products under direct CBN oversight.

The Non-VASP track targets innovations that leverage secure digital infrastructure and permission-based data sharing to boost financial inclusion, improve credit access, manage risk, and deliver better consumer outcomes.

Context from the First Cohort

When the CBN first launched its Regulatory Sandbox in December 2022, it received over 1,000 applications before closing the window in February 2023. That volume underscored the large number of startups building products that had no clear legal pathway to operate.

This second cohort represents a recalibration. By explicitly calling out VASPs and stablecoins, the CBN is acknowledging that digital assets are now integral to how millions of Nigerians move money, save, and handle cross-border payments. Nigeria consistently ranks among the world's top countries for cryptocurrency adoption, and the CBN's own shift reflects that reality. In February 2021, the CBN prohibited deposit money banks from facilitating cryptocurrency transactions, a restriction it lifted in December 2023 with updated guidance allowing banks to open accounts for virtual asset firms subject to risk assessment. The sandbox programme extends that reopening into a structured testing framework.

What the Sandbox Means for Founders

For fintech and crypto founders, the sandbox offers more than a controlled testing ground. It provides a direct line to the regulator at a time when regulatory clarity can significantly affect a company's ability to operate and scale. Joining the cohort means operating under CBN oversight, but also means building with the regulator's visibility rather than navigating uncertainty.

The CBN has stated that consumer protection, financial stability, and market integrity will remain top priorities throughout the testing period. By bringing digital asset products into a supervised environment, the central bank is creating a formal channel for assessing how they fit within Nigeria's broader regulatory framework. The programme also runs alongside separate digital asset oversight efforts from the Nigerian Securities and Exchange Commission, which has published its own rules for digital asset token issuance and custody, meaning participating founders may encounter a multi-regulator landscape as they scale beyond the sandbox.

More information is available on the CBN official website.