CBN’s regulatory sandbox launches

The Central Bank of Nigeria has announced that its regulatory sandbox is now active and available for use. This sandbox is designed to provide a secure environment for financial technology startups to test out their innovative ideas with guidance from the Central Bank. The goal is to help overcome the high barriers to entry in Nigeria’s heavily regulated financial technology sector.

To be eligible for the sandbox, companies must hold an existing license from the Central Bank or have innovative financial solutions that improve access to financial services and the customer experience. The application process for the sandbox began in 2021 with the release of the Framework for Regulatory Sandbox Operations.

The Central Bank of Nigeria is not alone in launching a regulatory sandbox. Other African countries such as Ghana, Mauritius, Kenya, and Mozambique have also established similar programs to foster interaction with fintech companies and promote financial inclusion. The Central Bank of Nigeria has also partnered with Emtech, a startup that provides digital infrastructure for central banks.

The objectives of the sandbox include reducing the time-to-market for products, increasing competition, and fostering engagement between the Central Bank and fintech startups. However, it should be noted that the sandbox does not provide funding for participating companies.