United Nigeria Airlines plans to raise ₦20bn through its debut commercial paper issuance, becoming the first domestic Nigerian airline to access the short-term debt market through the instrument if the offer is completed as planned.
The PUNCH reported on Sunday, October 18, 2026, that the proposed fundraising comprises the first two series under the airline’s ₦100bn commercial paper programme.
According to the airline’s September 2026 investor presentation cited by the newspaper, the offer consists of Series 1 and Series 2 papers with tenors of 270 days and 364 days, respectively. Meristem Capital Limited is the lead arranger, while Cordros Advisory Services Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, FSL Advisory Limited and Quantum Zenith Capital and Investments Limited will serve as dealers.
The airline said the fundraising would strengthen its financial position and support the expansion of its domestic, regional and international operations.
The proposed issuance comes as the carrier records significant revenue growth and plans to expand its fleet.
The airline’s investor presentation showed that revenue rose from ₦10.3bn in 2021 to ₦90.8bn in 2025, while profit after tax increased from ₦1.3bn to ₦23.8bn over the same period.
United Nigeria Airlines also reported revenue of ₦95.6bn in the first half of 2026. Its August turnover increased to ₦19.4bn from ₦14.1bn in July, while it recorded a net profit of ₦1.2bn during the month, according to figures published by The PUNCH.
Ahead of the proposed issuance, the airline obtained credit ratings from two agencies. Agusto & Co assigned it a short-term rating of A3 and a long-term rating of BBB-, both with a stable outlook, while DataPro assigned short-term and long-term ratings of A1 and BBB, respectively.
The ratings provide investors with an assessment of the airline’s creditworthiness but do not guarantee repayment.
The airline currently operates 10 aircraft, including Embraer ERJ-145s, a Boeing 737-800, Embraer E190s and CRJ900s. It plans to take delivery of six additional aircraft before the end of 2026, according to its investor presentation.
United Nigeria Airlines serves 14 destinations across Nigeria and Ghana and has secured approval to operate as a flag carrier to six international destinations. It has also signed Global Distribution System agreements with Amadeus and Sabre, enabling travel agents worldwide to access its ticket inventory.
In 2026, the airline signed the International Air Transport Association’s Multilateral Interline Traffic Agreement and became a full member of the African Airlines Association.
The proposed fundraising comes amid increased use of commercial paper by Nigerian companies seeking alternatives to conventional bank borrowing.
According to Nairametrics Research, Nigerian companies raised ₦1.61tn through commercial paper issuances in 2025, representing a 40% increase from ₦1.15tn in 2024. The figures were compiled from data provided by FMDQ Securities Exchange.
Commercial paper allows companies to raise short-term funds directly from investors, typically to finance working capital and other near-term business needs. However, issuers must repay the funds at maturity, making cash flow management essential.
For United Nigeria Airlines, the proposed ₦20bn issuance would provide another source of financing as it pursues fleet expansion and wider operations in an industry exposed to aviation fuel costs, foreign exchange pressures and aircraft maintenance expenses.
