Unity Bank has disbursed over N500 million through its Shop Collateralised Facility (SHOCOF) initiative to support small-scale traders and strengthen operators in Nigeria’s informal sector.
The innovative loan product, known as SHOCOF, was introduced to improve access to financing for traders and shop owners who often struggle to meet the strict collateral requirements associated with traditional banking systems.
Initially launched as a targeted intervention for traders in Southeast Nigeria, the product quickly gained popularity for its flexible structure and accessibility, prompting its expansion across the country.
Under the initiative, eligible customers can use their shops as collateral to access financing, enabling them to secure loans without the conventional demands usually tied to credit facilities.
The facility is designed to provide working capital support, helping beneficiaries restock goods, improve inventory turnover, boost cash flow, and respond more effectively to market demands.
According to recent reports, over 80 per cent of small businesses in Nigeria operate informally, with many depending on personal savings or informal borrowing channels because of limited access to formal bank credit. SHOCOF was developed to bridge this financing gap through a lending model tailored to the realities of market traders and small business owners.
Speaking on the impact of the initiative, the Group Head of Risk Management at Unity Bank, Olusegun Oladipo, said the Bank identified the urgent need for financing solutions that align 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 stated.
He added that by recognising the value and stability embedded in traders’ businesses, the Bank has been able to support operators with the capital needed to sustain and grow their operations.
Also commenting, the Divisional Head of SME and Retail Banking at Unity Bank, Adenike Abimbola, said the nationwide adoption of the product reflects the growing demand for accessible financing among 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,” Abimbola said.
Over the years, Unity Bank has continued to roll out initiatives aimed at empowering entrepreneurs, including its flagship Yanga account package designed to support female entrepreneurs.
The Bank reaffirmed its commitment to expanding access to capital for underserved business segments, noting that supporting small businesses remains vital to strengthening local economies, boosting trade, and driving sustainable economic growth in Nigeria.
