What is the CBN regulatory sandbox?
The Central Bank of Nigeria has a regulatory sandbox that it adopted in 2021 to ensure flexible ways of engaging with the financial industry in Nigeria.
The Regulatory Sandbox is a formal process for firms to conduct live tests of new products, services or solutions that are innovative with advancement potentials.
These include products, services or business models that are applicable in Nigeria’s financial system.
More so, these services must be acceptable under the laws of the Federal Republic of Nigeria to qualify for CBN sandbox trials.
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The CBN also released a framework that defines the establishment, rules and operations of a Regulatory Sandbox for the Nigerian Payments System.
The Framework provides standards for the operations of a Regulatory Sandbox. It further prescribes the processes and procedures for analyzing, collecting, updating, integrating, and storing consumer data and information.
CBN regulatory sandbox trail eligibility
The CBN designed the regulatory sandbox for financial institutions and companies with existing CBN licensees.
Individuals or companies proposing non-regulated financial products and services will also be considered for the CBN sandbox trial. This is with the condition that they are presenting emerging technologies as product.
Technology and telecom companies intending to test an innovative payments product are also eligible for CBN sandbox trial.
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Application for CBN Sandbox trial
The application for the CBN Sandbox trial is available on request through an email to the CBN on Sandbox@cbn.gov.ng. The document comes with minimum eligibility criteria to shortlist applicants who qualify for the sandbox.
Within 5 working days, the apex bank will confirm if an application is received.
The application must be submitted with a cover letter signed by an authorised signatory of the entity and addressed to the Director, Payments System Management Department, Central Bank of Nigeria, Abuja.