The Central Bank of Nigeria (CBN) says it will review the products and solutions being launched by licensed financial institutions when they are under implementation.
The apex bank said this owes to its commitment to building a financial services sector that promotes stability, fosters innovation and deepen inclusion. according to a circular referenced PSM/DIR/CON/CWO/16/106 issued to all deposit money banks, mobile money operators and payment service providers and signed by both Musa Jimoh, Director of payments system management department, and, Kevin Amugo, Director of financial policy and regulation department.
The CBN had in a framework titled “FRAMEWORK FOR REGULATORY SANDBOX OPERATIONS” say it will continue to stay abreast of innovations while promoting a safe, reliable and efficient payments system to foster innovation without compromising on the delivery of its mandate”.
The framework also said it aims to increase competition, widen consumers’ choice, lower costs and provide an avenue for regulatory engagement with fintech firms in the payment space while contributing to economic growth.
“In this regard, the CBN has implemented several reform initiatives towards the achievement of these objectives. In continuation of these efforts, the CBN hereby issues the framework for the regulatory sandbox operations in Nigeria.
All stakeholders in the regulatory sandbox are required to ensure strict compliance with the requirements of the framework and all other payments system regulations, as the CBN continues to monitor development and issue guidance as may be appropriate.
A regulatory sandbox is a formal process for firms to conduct live tests of new products, services, delivery channels, or business models in a controlled environment, with regulatory oversight, subject to appropriate conditions and safeguards.
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