Unity Bank Expands SHOCOF Scheme Nationwide, Disburses Over N500m to Small Traders
Unity Bank Plc has intensified efforts to support small and medium-scale enterprises (SMEs) and operators in Nigeria’s informal sector through its innovative lending initiative known as the Shop Collateralised Facility (SHOCOF), with more than N500 million already disbursed to beneficiaries across the country.
The bank said the initiative was designed to improve access to finance for small-scale traders and shop owners who often struggle to secure traditional bank loans due to stringent collateral requirements and limited formal financial records.
Originally introduced as a targeted intervention for traders in South-East Nigeria, the SHOCOF scheme rapidly gained popularity among market operators because of its flexible structure and simplified lending process.
Following the positive reception, Unity Bank expanded the facility nationwide to accommodate growing demand from traders and small business owners in different parts of the country.
Under the lending model, eligible customers are allowed to use their shops as collateral to access financing. The arrangement enables traders to leverage the commercial value and permanence of their business locations to obtain credit without the conventional hurdles associated with traditional bank lending systems.
According to the bank, the facility provides working capital support that allows beneficiaries to restock goods, improve inventory turnover, strengthen cash flow, and meet increasing market demand more efficiently.
The initiative comes amid growing concerns over limited financial inclusion within Nigeria’s informal business sector. Recent reports indicate that more than 80 per cent of small businesses in the country operate informally, with many entrepreneurs relying largely on personal savings or informal borrowing channels because of restricted access to formal bank credit.
Unity Bank explained that SHOCOF was specifically developed to bridge this financing gap by offering a credit solution tailored to the operational realities of traders and small shop owners.
Speaking on the impact of the initiative, the Group Head, Risk Management at Unity Bank, Olusegun Oladipo, said the bank recognised the urgent need for financing models that align with the structure and realities of informal sector businesses.
He said SHOCOF was created to address a major gap within the small business ecosystem by providing access to credit through a structure that traders can easily meet without unnecessary complications.
According to him, by recognising the value and stability inherent in the businesses of traders, the bank has been able to support operators with the capital needed to sustain and expand their operations.
Also commenting on the initiative, the Divisional Head, SME and Retail Banking at Unity Bank, Adenike Abimbola, said the nationwide expansion of the product reflects the bank’s commitment to proper market segmentation and inclusive financing.
She noted that the product gained rapid acceptance because it directly addressed the day-to-day realities faced by ordinary traders and small business operators.
Over the years, Unity Bank has continued to roll out targeted financial solutions aimed at supporting entrepreneurs and underserved groups.
Among such initiatives is the bank’s flagship Yanga account package, which was developed specifically to empower female entrepreneurs and promote financial inclusion among women-owned businesses.
The bank reaffirmed its commitment to expanding access to capital for underserved business segments, stressing that improved financing for SMEs and informal businesses remains essential to boosting trade, strengthening local economies, and driving sustainable economic growth across Nigeria.
