Unity Bank says it has disbursed more than ₦500 million to small-scale traders and shop owners across Nigeria through its Shop Collateralised Facility (SHOCOF), in a move aimed at boosting small businesses and deepening financial inclusion.
The bank disclosed this in a statement on Friday, explaining that the loan product was designed to improve access to credit for operators in the informal sector who often struggle to meet conventional lending requirements.
According to the bank, SHOCOF was initially introduced as a targeted intervention for traders in the South-East before it was expanded nationwide following strong acceptance driven by its flexible and tailored structure.
It noted that the facility allows eligible customers to use their shops as collateral to access credit, thereby reducing the stringent collateral requirements associated with traditional banking loans.
Unity Bank stated that the initiative has enabled beneficiaries to secure working capital to restock goods, increase inventory turnover, improve cash flow, and respond more effectively to market demand.
The bank further observed that over 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 financing.
It added that SHOCOF was developed to bridge this financing gap through a lending model specifically tailored to market traders and small shop owners.
Speaking on the impact of the product, the Group Head, Risk Management, Unity Bank, Mr Olusegun Oladipo, said the bank recognised the need for financing solutions aligned 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 conveniently meet.
“By recognising the value and stability embedded in their businesses, we have supported traders with the capital required to sustain and grow their operations,” he said.
Also speaking, the Divisional Head, SME and Retail Banking, Unity Bank, Adenike Abimbola, said the nationwide expansion of the product reflected the bank’s strategy of meeting rising demand for accessible financing among small business owners.
“What started as a targeted intervention in the South-East quickly gained momentum because the product directly addressed the realities of everyday traders,” she said.
The bank added that it has continued to introduce targeted financial solutions aimed at empowering entrepreneurs, including its Yanga account package developed to support female entrepreneurs.
Unity Bank reaffirmed that expanding access to capital for underserved business segments remains critical to boosting trade, strengthening local economies, and driving sustainable economic growth.
