Unity Bank Plc says it has disbursed over N500 million through its Shop Collateralised Facility (SHOCOF) to support small-scale traders and shop owners across Nigeria.
Unity Bank
The bank said the initiative was part of its efforts to promote Small and Medium Enterprises (SMEs) and strengthen support for operators in the informal sector.
In a statement, Unity Bank described SHOCOF as an innovative loan product designed to improve access to finance and drive financial inclusion among underserved business owners.
According to the bank, the facility was initially introduced as a targeted intervention for traders in Southeast Nigeria before expanding nationwide following strong acceptance and demand.
Under the initiative, eligible customers are allowed to use their shops as collateral to access credit, eliminating the stringent collateral requirements associated with conventional lending models.
The bank said the product leverages the commercial value and relative stability of fixed business locations to simplify access to financing for traders.
It added that the facility provides working capital support to enable beneficiaries restock goods, increase inventory turnover, improve cash flow, and respond more efficiently to market demands.
Speaking on the impact of the product, Group Head, Risk Management, Unity Bank, Mr Olusegun Oladipo, said the bank developed SHOCOF to address financing challenges faced by businesses 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.
“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,” he said.
Also speaking, Divisional Head, SME and Retail Banking, Unity Bank, Mrs Adenike Abimbola, said the expansion of the initiative nationwide reflected the bank’s commitment to providing practical financial solutions for 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 more than 80 per cent of small businesses in Nigeria operate informally, with many relying on personal savings and informal borrowing due to limited access to bank credit.
It said SHOCOF was designed to bridge this financing gap by offering a lending model tailored to the operational realities of market traders and shop owners.
Unity Bank reaffirmed its commitment to supporting entrepreneurs through targeted financial products, including its Yanga account package developed for female entrepreneurs.
The bank said expanding access to capital for underserved business segments remains critical to boosting trade, strengthening local economies and driving sustainable economic growth.
