Unity Bank Plc has disbursed over N500 million to small-scale traders and shop owners across the country through its Shop Collateralised Facility (SHOCOF), as part of efforts to deepen financial inclusion and support small and medium-scale enterprises (SMEs).
The bank said the initiative, which was initially introduced as a targeted intervention for traders in South-East Nigeria, has now been expanded nationwide following increasing demand and acceptance among operators in the informal sector.
According to the bank, SHOCOF is designed to simplify access to credit by allowing eligible traders to use their shops as collateral to secure loans, thereby eliminating some of the stringent collateral requirements associated with traditional lending structures.
The facility provides working capital support to beneficiaries, enabling them to restock goods, improve inventory turnover, boost cash flow, and respond more effectively to market demand.
Speaking on the impact of the initiative, the Group Head, Risk Management at Unity Bank Plc, Olusegun Oladipo, said the product was created to address the financing challenges faced by informal sector businesses.
He explained that the bank recognised the need for financing solutions tailored to the realities of small traders and shop owners.
“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 that by recognising the value and stability embedded in the businesses of traders, the bank had been able to provide the capital needed to sustain and grow their operations.
Also speaking, the Divisional Head, SME and Retail Banking at Unity Bank Plc, Adenike Abimbola, said the nationwide expansion of the product reflected the bank’s strategic market segmentation and commitment to meeting the growing demand for accessible financing among small business owners.
According to her, the product gained momentum because it directly addressed the realities and financing needs of everyday traders.
Recent reports indicate that 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 bank credit.
The bank noted that SHOCOF was developed to bridge this financing gap through a lending model specifically tailored to market traders and small shop owners.
Over the years, Unity Bank Plc has introduced several targeted solutions aimed at supporting entrepreneurs, including its Yanga account package designed for female entrepreneurs.
The bank reaffirmed its commitment to expanding access to capital for underserved business segments, stressing that such support remains vital to boosting trade, strengthening local economies, and driving sustainable economic growth.
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