The Central Bank of Nigeria (CBN), together with the National Financial Inclusion Governance Committee, launched the National Financial Inclusion Strategy in 2022, emphasizing the importance of financial inclusion in Nigeria and the central role of the CBN in facilitating financial inclusion. The CBN is considering launching a regulatory sandbox. The governors of the CBN have appointed your consulting firm, RS (Pty) Ltd, to assist in outlining the benefits of a regulatory sandbox and the design of a regulatory sandbox. You are required to:

1. Outline two benefits of a regulatory sandbox, with an emphasis on the benefits for your country.

2. Outline two challenges of a regulatory sandbox, with an emphasis on challenges for your country.

3. Advise the Central Bank on the key design elements of a regulatory sandbox and for each element, outline the design choices, given specific recommendations where appropriate.

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1 Benefits of a Regulatory Sandbox for Nigeria a Fostering Innovation A regulatory sandbox in Nigeria would encourage financial technology fintech companies and startups to innovate in the financial s... View the full answer