NITDA inaugurates technical working group on framework for digital innovation

*The National Information Technology Development Agency inaugurates a Technical Working Group for the National Regulatory Sandbox initiative as part of efforts at fostering a more enabling environment for innovation in the emerging Nigeria Digital Economy

Gbenga Kayode | ConsumerConnect

In a decisive step to address structural regulatory challenges hindering innovation in the ecosystem, the National Information Technology Development Agency (NITDA) has intensified efforts at fostering a more enabling environment for innovation by inaugurating a Technical Working Group (TWG).

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ConsumerConnect reports NITDA said the Technical Working Group was set up to strengthen regulatory collaborations and advance a coordinated sandbox framework for the Nigeria Digital Economy.

On pace of innovation in Nigeria Digital Economy

Malam Kashifu Inuwa Abdullahi, CCIE, Director-General of NITDA, speaking at the inauguration ceremony, emphasised the critical need for stronger cross-agency cooperation to address structural regulatory challenges that often hinder the pace of innovation in the Nigerian digital space.

Represented at the event by Barrister Emmanuel Edet, Acting Director of Regulation and Compliance at NITDA, 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.

The NITDA Chief also 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.”

He said: “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.”

Significance of regulatory sandboxes, by Inuwa

The NITDA Chief also observed the rapid expansion of the digital economy continues to outpace conventional regulatory systems, creating gaps that could inadvertently delay or obstruct the deployment of innovative solutions capable of improving livelihoods and driving national development.

However, to address these challenges, he said the Agency was 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.

According to Inuwa, central to this strategy 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.

Overview of National Regulatory Sandbox initiative

Presenting an overview of the National Regulatory Sandbox, Victoria Fabunmi, National Coordinator of the Office for Nigerian Digital Innovation (ONDI), said the initiative was 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.

Fabunmi explained that despite rapid advancements across sectors, such as Artificial Intelligence, Financial Technology (FinTech), health technology, and Blockchain technology, 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 thr Nigeria 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 further said the sandbox would also generate shared, evidence-based regulatory insights, enabling participating agencies to make informed decisions collectively and develop adaptive policies that support responsible innovation.

NITDA said the inauguration of the Technical Working Group marked another significant step in the agency’s efforts at building 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.

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