Unity Bank Plc has disbursed over N500 million to small businesses across Nigeria through its Shop Collateralised Facility (SHOCOF), a loan scheme created to improve access to finance for traders and shop owners operating in the informal sector.
Nigeria Startup News reports that the bank disclosed this in a statement, noting that the initiative was introduced as part of its broader support for Small and Medium Enterprises (SMEs) and efforts to deepen financial inclusion among underserved entrepreneurs.
According to Unity Bank, SHOCOF was first launched as a targeted intervention for traders in Southeast Nigeria before it was expanded nationwide following strong acceptance and increasing demand from small business operators.
The lender explained that the facility allows eligible customers to use their shops as collateral to secure loans, removing the strict collateral conditions usually attached to conventional bank lending.
Unity Bank said the model was designed to recognise the commercial value and stability of fixed business locations while making it easier for traders to access working capital needed to sustain and expand their operations.
The bank added that beneficiaries of the scheme can use the loans to restock goods, improve inventory turnover, boost cash flow and respond more effectively to changing market demands.
Speaking on the impact of the initiative, Group Head, Risk Management at Unity Bank, Mr Olusegun Oladipo, said the product was created to solve a major financing challenge affecting operators within Nigeria’s informal economy.
“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.
“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 and Retail Banking at Unity Bank, Mrs Adenike Abimbola, said the nationwide expansion of the facility reflected the bank’s commitment to providing practical financial solutions tailored to the realities of 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.
Unity Bank noted that over 80 per cent of small businesses in Nigeria operate within the informal sector, with many entrepreneurs depending on personal savings and informal borrowing channels due to limited access to bank credit.
The bank said SHOCOF was specifically developed to bridge that financing gap and support market traders and shop owners with easier access to structured funding.
Unity Bank also reaffirmed its commitment to supporting entrepreneurship through targeted financial products, including its Yanga account package designed for female entrepreneurs across Nigeria.
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