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The Central Bank of Nigeria (CBN) has released the Framework for
Regulatory Sandbox Operations, to ensure the safety and stability of the
Nigerian Financial System, among other things.
It is also to promote the use and adoption of electronic payments and
foster innovation in the payments system.
The CBN released the structure on its website on Wednesday and said one
of the objectives was to increase the potential for innovative business
models that advance financial inclusion.
The bank explained that it came up with the structure to ensure new and
more flexible ways of engaging with the banking industry.
This, it said, is in view of increasing consumer appetite for payment
solutions and emerging disruptive technology in the financial services
space.
It said that the structure would enable the Bank stay abreast of
innovations while promoting a safe, reliable and efficient Payments
System to foster innovation without compromising on the delivery of its
mandate.
“This Framework, therefore, defines the establishment, rules and
operations of a Regulatory Sandbox for the Nigerian Payments System to
promote effective competition, embrace new technology, encourage
Financial Inclusion and improve customer experience, with a view to
engendering public confidence in the Financial System,” it said.
The bank explained also that the structure was to reduce time-to-market
for innovative products, services, and business models.
According to CBN, the framework will increase competition, widen
consumers’ choice and lower costs.
It also said that it would ensure appropriate consumer protection
safeguards in innovative products.
The CBN said that the structure would clearly define the roles and
responsibilities of stakeholders and the operations of the Sandbox for
the Nigerian Payments System industry.
The apex bank added that the framework would ensure adequate provisions
in regulations to create an enabling environment for innovation without
compromising on safety for consumers and the overall payments system.
Besides, it said that it would provide an avenue for regulatory
engagement with FinTech firms in the payment space, while contributing
to economic growth.(NAN)