Unity Bank Plc has disbursed over N500 million to small-scale traders and shop owners across Nigeria through its Shop Collateralised Facility, SHOCOF, as part of efforts to strengthen support for small businesses and deepen financial inclusion in the informal sector.
The innovative loan product, designed to provide easier access to financing for market traders and small shop owners, allows eligible customers to use their shops as collateral to secure loans without the stringent requirements associated with traditional lending structures.
Initially introduced as a targeted intervention for traders in Southeast Nigeria, the SHOCOF initiative gained rapid acceptance due to its flexibility and customer-focused structure, prompting the bank to expand the scheme nationwide.
The facility provides working capital support to beneficiaries, enabling them to restock goods, improve inventory turnover, strengthen cash flow, and respond more effectively to market demand.
According to recent industry reports, over 80 per cent of Nigeria’s small businesses operate informally, with many depending on personal savings and informal borrowing channels because of limited access to formal bank credit. SHOCOF was developed to bridge this financing gap through a lending structure tailored to the realities of grassroots businesses.
Speaking on the impact of the initiative, Group Head, Risk Management at Unity Bank Plc, Olusegun Oladipo, said the bank recognised the need for practical financing solutions suited to operators in the informal sector.
“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,” he said.
Oladipo added that by recognising the value and stability embedded in fixed business locations, the bank has been able to provide traders with the capital required to sustain and grow their operations.
Also speaking, Divisional Head, SME and Retail Banking at Unity Bank Plc, Adenike Abimbola, said the nationwide adoption of the product reflects the bank’s strategy of aligning financial solutions with the realities of everyday traders and small business owners.
“What started as a targeted intervention in the Southeast quickly gained momentum because the product directly addressed the realities of everyday traders,” she said.
The bank noted that it remains committed to empowering entrepreneurs through targeted financial products, including its Yanga account package developed for female entrepreneurs, while reiterating that expanding access to finance for underserved business segments is key to strengthening local economies and driving sustainable economic growth.
