This archive report was first published on 11 June 2020.
On the heels of Kenya's pioneering move, Nigeria's Central Bank of Nigeria (CBN) is making significant strides in creating a regulatory sandbox to foster innovation in the financial sector.
As part of its initiative to boost the adoption of financial services, the CBN is finalizing the frameworks for the sandbox, which will provide a platform for fintechs to create solutions for social problems with minimal regulatory interference.
The country's journey to promote cashless systems has been a long one, with the establishment of the Financial Service Innovators association providing an ecosystem for innovations in the sector.
Notably, Nigeria has made significant strides in promoting access and innovations in finance, including the creation of a Cashless Policy in 2012 and the launch of a Bank Verification Number (BVN) in 2014 to curb fraud in the banking system.
According to Musa Jinoh, the CBN's Director for Digital Payment Systems, the bank's desire is to see innovators take a lead role in driving innovations by bridging the gaps to address existing challenges.
With Kenya having launched its sandbox in 2018, Nigeria is set to join the ranks of six African countries developing similar models, with Kenya and Sierra Leone already having implemented their sandboxes.
