As part of efforts to strengthen support for small and medium-scale enterprises and deepen financial inclusion, Unity Bank Plc has disbursed over N500 million to traders and shop owners across Nigeria through its innovative loan product, Shop Collateralised Facility (SHOCOF).
The initiative, designed to empower operators within the informal sector, enables eligible customers to use their shops as collateral to access financing without the stringent conditions associated with conventional lending structures.
Initially introduced as a targeted intervention for traders in Southeast Nigeria, the SHOCOF scheme quickly gained widespread acceptance due to its flexibility and tailored approach to the realities of small business operators. The success of the product subsequently prompted the bank to expand the initiative nationwide.
Under the facility, beneficiaries are provided with working capital support to restock goods, improve inventory turnover, boost cash flow, and respond more effectively to market demand.
According to recent reports, more than 80 per cent of small businesses in Nigeria operate informally, with many relying on personal savings and informal borrowing channels due to limited access to traditional bank credit. SHOCOF was developed to bridge this financing gap through a lending model specifically designed for market traders and small shop owners.
Speaking on the impact of the product, the Group Head, Risk Management, Unity Bank, Olusegun Oladipo, said the Bank recognised the need for financing solutions aligned with the realities of informal sector businesses.
“SHOCOF was created to address a critical gap within the small business ecosystem by providing access to credit through a structure that traders can satisfactorily meet without much ado,” Oladipo said.
He added, “By recognising the value and stability embedded in their businesses, we have been able to support traders with the capital required to sustain and grow their operations.”
Also commenting, Divisional Head, SME & Retail Banking, Unity Bank, Adenike Abimbola, said the nationwide adoption of the product reflects proper market segmentation to meet the growing demand for accessible financing among small business owners.
“What started as a targeted intervention in the Southeast, which quickly gained momentum because the product directly addressed the realities of everyday traders,” Abimbola said.
Over the years, Unity Bank has continued to introduce targeted solutions aimed at empowering entrepreneurs, including its flagship Yanga account package developed to support female entrepreneurs.
The Bank reaffirmed that expanding access to capital for underserved business segments remains critical to boosting trade, strengthening local economies, and driving sustainable economic growth.
