Unity Bank Disburses Over N500m to Traders Through SHOCOF Initiative

Unity Bank Disburses Over N500m to Traders Through SHOCOF Initiative

LAGOS — In a move aimed at deepening financial inclusion and supporting small businesses across Nigeria, Unity Bank⁠� has disbursed over N500 million to traders and shop owners through its Shop Collateralized Facility (SHOCOF), an innovative loan scheme designed for operators in the informal sector.

The bank said the initiative was introduced to provide easier access to financing for small-scale traders and entrepreneurs who often struggle to meet the stringent collateral requirements associated with traditional bank loans.

Initially launched as a targeted intervention for traders in Southeast Nigeria, SHOCOF quickly gained popularity due to its flexible structure and accessibility, prompting the bank to expand the scheme nationwide.

Under the facility, eligible customers are able to use their shops as collateral to obtain loans, enabling them to secure working capital needed to restock goods, improve inventory turnover, boost cash flow and respond more effectively to market demands.

According to the bank, the initiative was developed in response to the financing challenges facing informal businesses, especially as reports indicate that more than 80 per cent of Nigeria’s small businesses operate outside the formal financial system and rely heavily on personal savings or informal borrowing channels.

Speaking on the impact of the scheme, the Group Head, Risk Management at Unity Bank, Olusegun Oladipo, said the product was designed to align with the realities of informal sector operators.

“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.

He added that the bank’s recognition of the value and stability embedded in traders’ businesses had enabled many beneficiaries to access the capital needed to sustain and expand their operations.

Also speaking, the Divisional Head, SME & Retail Banking at Unity Bank, Adenike Abimbola, said the nationwide expansion of the product reflected 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,” she said.

Unity Bank noted that it has continued to introduce targeted financial solutions aimed at empowering entrepreneurs and underserved segments of the economy, including its Yanga account package developed to support female entrepreneurs.

The bank reaffirmed its commitment to expanding access to capital for underserved businesses, stressing that improved financing for small enterprises remains essential for boosting trade, strengthening local economies and driving sustainable economic growth.