United Nigeria Airlines Issues Commercial Paper, Targets Raising N20bn

Chinedu Eze

United Nigeria Airlines Company Limited has announced intention to issue commercial paper with a first tranche of N20 billion, indicating that it is the first domestic operator to do so.

According to its September 2026 investor presentation which outlined its financial performance and five-year expansion strategy, the airline said the commercial paper will be issued in series one and two with tenors of 270 days and 364 days.

The proposed issuance, the domestic carrier explained, is the first under the airline’s N100 billion commercial paper programme.

The transaction has Meristem Capital Limited as lead arrangers and Cordros Advisory Services Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, FSL Advisory Limited and Quantum Zenith Capital & Investments Limited as dealers. The issue comes as the airline seeks to strengthen its financial position and expand domestic, regional and international operations.

United Nigeria Airlines also secured investment grade ratings from two rating agencies. Agusto & Co. rated it A3 for the short term and BBB- for the long term with a stable outlook and DataPro assigned the airline short-term and long-term ratings of A1 and BBB.

“The company’s stellar performance is evident in its financials. United Nigeria has grown its revenue from N10.3 billion in FY2021 to N90.8 billion in FY2025. Profit after tax increased from N1.3 billion to N23.8 billion over the same period. It recorded a revenue of N95.6 billion in the first half of 2026 and its August performance was resilient with turnover rising to N19.4 billion from N14.1 billion in July, while it returned to a net profit of N1.2 billion. The airline expressed optimism that its performance for the remaining part of the year and beyond would be in the upward trajectory,” the airline said in a statement.

The airline currently operates 10 aircraft including Embraer ERJ-145, Boeing 737-800, Embraer E190 and CRJ900.

It projects to receive six more aircraft before the end of the year.

United Nigeria Airlines currently serves 14 destinations across Nigeria and Ghana and has secured approval to operate as a flag carrier to six international destinations.

The airline also secured Global Distribution System (GDS) agreements with Amadeus and Sabre, allowing travel agents worldwide to access its ticket inventory. It has been an International Air Transport Association (IATA) Operational Safety Audit (IOSA) certified operator since 2022 and an IATA member airline.

In 2026, it signed the IATA Multilateral Interline Traffic Agreement and became a full member of the African Airlines Association.