The Central Bank of Nigeria (CBN) Calls for Applications for Participation in Its Regulatory Sandbox – Download PDF Here.
The Central Bank of Nigeria (the “CBN”) on Monday, 12 December 2022 issued an invitation to participants in the financial system to submit expressions of interest to participate in its Regulatory Sandbox (“the Sandbox”).
It will be recalled that in January 2021, the CBN in recognition of the increasing consumer appetite for payment solutions and the need to encourage innovation in the delivery of financial services in Nigeria issued the Framework for Regulatory Sandboxes Operations (“the Framework”). In the Sandbox, innovators will conduct live tests of new products and services, delivery channels, or business models in a controlled environment, with regulatory oversight.
All entities with innovative financial solutions (including digital lenders, application developers, start-ups, financial technology providers etc.) are eligible to apply for participation in the Sandbox. Applicants are required to complete an application form on or before 1 February 2023. Additional eligibility criteria provided by the Framework and contained on the Sandbox landing page include:
- The product, service or solution is innovative with clear potential to improve the provision of financial services;
- The applicant must provide the product within a stated transaction limit (value and volume) for better risk management and mitigation;
- The applicant must have conducted a proper assessment to determine usefulness of the product and to highlight associated risks;
- The applicant must have adequate resources (including manpower and expertise) to support testing in the Sandbox and mitigate risks and losses arising from offering of the product; and
- The applicant should have a business plan to show that the product, service, or solution can be successfully deployed after exit from the sandbox.An acknowledgment of receipt of each application will be sent to applicants and each applicant will be informed of the outcome of the application within 60 working days after the closing date of the application process.
With the launch of the Sandbox, Nigeria now joins African countries like Kenya, Sierra Leone, Mauritius, and Mozambique with active sandbox programmes. It is hoped that this programme will lead to greater financial inclusion and improved delivery of financial services in Nigeria.
For more information on how we can assist you with advice on the Sandbox application process, please contact: