Nigeria’s technology ecosystem is evolving rapidly, but innovation often moves faster than regulation.
For startups testing new products in emerging sectors such as fintech, artificial intelligence, digital identity, and blockchain, navigating multiple regulatory requirements can be as challenging as building the technology itself.
To address this gap and create a more coordinated approach to innovation oversight, the National Information Technology Development Agency (NITDA) has inaugurated a Technical Working Group (TWG) tasked with deepening regulatory collaboration and advancing a unified sandbox framework for Nigeria’s digital economy.
Speaking at the inauguration, Kashifu Inuwa, the director general of NITDA, represented by Mr. Emmanuel Edet, the acting director of Regulation and Compliance, emphasised the critical need for stronger cross-agency cooperation to address structural regulatory challenges that often hinder the pace of innovation.
Inuwa noted that members of the Technical Working Group were deliberately selected based on their strategic institutional roles and capacity to contribute practical solutions tailored to the evolving realities of Nigeria’s digital ecosystem.
He explained that while regulatory agencies have legitimate and clearly defined mandates, the increasing complexity of digital technologies requires greater institutional alignment and collaboration to ensure regulatory frameworks support, rather than constrain, innovation.
“As government institutions, our core responsibility is to provide solutions to the challenges faced by Nigerians. The issue is not a lack of commitment, but a structural one. Regulators often operate in silos while implementing their mandates, and in today’s digital environment, that model presents significant limitations,” he said.
The NITDA Director General observed that the rapid expansion of the digital economy continues to outpace conventional regulatory systems, creating gaps that can inadvertently delay or obstruct the deployment of innovative solutions capable of improving livelihoods and driving national development.
To address these challenges, he said the Agency is championing a multi-agency regulatory framework designed to bring regulators together, foster understanding of overlapping mandates, and collectively develop adaptive mechanisms that create room for innovation while maintaining effective oversight.
Central to this strategy, Inuwa explained, is the adoption of regulatory sandboxes, controlled environments where innovators can test emerging technologies and solutions under the supervision and guidance of relevant regulatory authorities.
“Our guiding principle is that we learn by doing. Through these sandboxes, regulators can contribute to building safe spaces where innovation can be nurtured, tested, and scaled for the benefit of Nigerians,” he added.
He further reassured stakeholders that the initiative is not intended to weaken or override any agency’s statutory powers, but rather to improve coordination and build a more responsive regulatory ecosystem capable of keeping pace with technological advancement.
According to him, stronger inter-agency collaboration is essential to ensuring that Nigeria remains competitive in the global digital economy and fully harnesses innovation as a driver of inclusive economic growth and national prosperity.
Inuwa expressed optimism that the Technical Working Group would serve as a strategic platform for shaping forward-looking regulatory solutions while advancing NITDA’s broader vision of repositioning the Agency as an ecosystem orchestrator committed to enabling digital transformation and sustainable national development.
Presenting an overview of the National Regulatory Sandbox, Victoria Fabunmi, the national coordinator of the Office for Nigerian Digital Innovation (ONDI), said the initiative is designed to provide a structured, legal, and multi-agency framework that enables innovators to test emerging technologies under regulatory supervision before obtaining full market approval.
According to her, despite rapid advancements across sectors such as Artificial Intelligence, fintech, health technology, and blockchain, innovators continue to face significant challenges due to siloed regulations, fragmented approval processes, and the absence of coordinated mechanisms for testing new technologies.
Fabunmi noted that while Nigeria’s digital economy continues to witness remarkable growth, the lack of harmonised regulatory engagement has often delayed innovation and increased uncertainty for startups and technology-driven enterprises.
Describing the National Regulatory Sandbox as more than just a digital platform, she explained that it is fundamentally a governance and legal framework aimed at creating an enabling environment where innovation can thrive responsibly.
Unlike traditional sandbox models often associated primarily with financial services regulation, Fabunmi said Nigeria’s approach is intentionally sector-agnostic, allowing regulators from multiple sectors, including agriculture, digital health, mobility, clean energy, and digital public infrastructure,to collaborate in supporting innovative solutions.
Under the framework, startups and innovators will be able to engage multiple regulators simultaneously within a controlled testing environment, reducing bureaucratic bottlenecks and significantly shortening time-to-market for emerging solutions.
She added that the sandbox will also generate shared, evidence-based regulatory insights, enabling participating agencies to make informed decisions collectively and develop adaptive policies that support responsible innovation.
The inauguration of the Technical Working Group marks another significant step in NITDA’s efforts to build a more agile, collaborative, and innovation-friendly regulatory environment., one that aligns with Nigeria’s broader ambition of becoming a leading digital economy in Africa.
