United Nigeria Airlines is preparing to raise ₦20 billion through commercial paper, a move that would make it the first domestic airline operator in Nigeria to issue the short-term debt instrument.
The proposed fundraising comes as the airline pursues fleet expansion and greater international reach, building on the financial gains recorded over the past five years. It also marks a new financing milestone for Nigeria’s domestic aviation industry, where access to capital is essential for operators seeking to increase capacity and extend their route networks.
The offer represents the first tranche of a ₦100 billion commercial paper programme. According to the airline’s September 2026 investor presentation, Series 1 and Series 2 will have tenors of 270 days and 364 days, respectively. The presentation also outlined the company’s financial performance and five-year expansion strategy.
Meristem Capital Limited will serve as lead arranger, with Cordros Advisory Services Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, FSL Advisory Limited and Quantum Zenith Capital & Investments Limited participating as dealers.
The airline’s financial results provide context for the proposed issuance. Revenue climbed from ₦10.3 billion in the 2021 financial year to ₦90.8 billion in 2025, while profit after tax increased from ₦1.3 billion to ₦23.8 billion over the same period.
Growth has continued into 2026. United Nigeria Airlines recorded ₦95.6 billion in revenue during the first half of the year. In August, turnover rose to ₦19.4 billion from ₦14.1 billion in July, and the company returned to a net profit of ₦1.2 billion. Management expects the positive trajectory to continue through the remainder of the year and beyond.
Credit assessments from two rating agencies offer further insight into the airline’s financial standing. Agusto & Co. assigned it an A3 short-term rating and a BBB- long-term rating, with a stable outlook. DataPro awarded the airline A1 for the short term and BBB for the long term. However, sustaining financial performance and meeting repayment obligations will remain critical to the success of the commercial paper programme.
Operational expansion is another major part of the company’s plans. Its current fleet comprises 10 aircraft, including Embraer ERJ-145s, Boeing 737-800s, Embraer E190s and CRJ900s. Six additional aircraft are expected before the end of 2026, potentially increasing its capacity to serve existing routes and support further expansion.
The airline presently serves 14 destinations across Nigeria and Ghana and has secured approval to operate as a flag carrier to six international destinations. Its access to overseas markets has also improved through agreements with Amadeus and Sabre, global distribution systems that enable travel agents worldwide to access its ticket inventory.
United Nigeria Airlines has maintained International Air Transport Association Operational Safety Audit (IOSA) certification since 2022 and is an IATA member airline. In 2026, it signed the IATA Multilateral Interline Traffic Agreement and became a full member of the African Airlines Association. The interline agreement provides a framework for participating airlines to cooperate on passenger itineraries and ticketing, creating opportunities for improved connectivity through partnerships.
The proposed ₦20 billion issuance places the airline at the intersection of financial growth and operational ambition. Its ₦100 billion programme establishes a framework for additional commercial paper issuances, while the initial offer is intended to support a business pursuing greater capacity and a more strategic international presence.
The outcome will depend on how effectively the company deploys the funds and balances its expansion plans against short-term repayment commitments. Its revenue growth, August return to profitability and credit ratings provide useful indicators, but sustained operating returns and disciplined cash-flow management will be essential.
If completed as proposed, the transaction will establish a first for Nigeria’s domestic aviation industry and demonstrate how commercial paper can provide another financing route for airlines seeking to strengthen their operations and compete in a demanding market.
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