Regulating Innovation: CBN’s New Financial Frontier
By Zekeri Idakwo Laruba
As technology continues to transform the way Nigerians save, pay, borrow, invest and access financial services, the Central Bank of Nigeria (CBN) is increasingly adapting its regulatory approach to keep pace with an evolving financial ecosystem.
From digital payments and fintech platforms to virtual assets, stablecoins and data-enabled financial services, new technologies are creating opportunities for greater financial inclusion and efficiency while introducing new regulatory, consumer-protection and financial-stability challenges.
Rather than waiting for emerging technologies to become fully established before determining how they should be regulated, the CBN is creating controlled environments where innovations can be tested, monitored and better understood.
This approach is at the centre of the CBN Regulatory Sandbox Programme, whose second cohort was launched on August 12, 2026, with applications open to eligible innovators, financial institutions, Virtual Asset Service Providers (VASPs), financial technology companies and technology companies.
The announcement was contained in a press release issued by the CBN’s Corporate Communications Department and signed by Hakama Sidi Ali (Mrs.), Ag. Director, Corporate Communications.
The launch of Cohort 2 introduces two dedicated testing tracks aimed at supporting emerging technologies with the potential to strengthen Nigeria’s financial system while maintaining consumer protection, financial stability and market integrity.
Two pathways for financial innovation
The first is the Virtual Asset Service Provider (VASP) Track, which targets innovative virtual-asset, stablecoin, payment, settlement, custody,…
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