In continuation of its efforts towards building a financial services sector that promotes innovation, the Central Bank of Nigeria (the “CBN”) on 23 June 2020 issued a Circular PSM/DIR/CON/CWO/07/011 to all Deposit Money Banks, Mobile Money Operators and Payment Service Providers (the “Circular”).
By the Circular, the CBN stated that it had published an exposure draft of the Regulatory Framework for Sandbox Operations in Nigeria (the “Framework”), detailing the requirements for the conduct of live tests on innovative products, services and other solutions in a controlled environment.
The CBN also invited stakeholders to forward inputs to the Framework to the Director, Payments System Management Department of the CBN or through firstname.lastname@example.org on or before 15 July 2020.
A regulatory sandbox is a framework set up by a regulator that allows FinTech startups and other innovators to test their new unlicensed products in a controlled environment under a regulator’s supervision. The approach allows the stakeholders to experiment and learn before adopting a final position on products or business models.
We will provide a comprehensive analysis of the Framework.