United Nigeria Airlines is preparing to become the first domestic operator in Nigeria to issue commercial paper, targeting ₦20 billion in its maiden transaction. According to its September 2026 investor presentation, the fundraising will strengthen its financial position and support its business strategy.
Commercial paper is a short-term debt instrument companies use to raise money from investors, usually to meet working capital requirements and other business expenses. For United Nigeria Airlines, the proposed ₦20 billion issuance could provide funding for operational needs, including payments to suppliers and other expenses, while supporting its business activities. The airline would be required to repay investors according to the agreed terms, including any applicable interest or return.
The airline plans to issue Series 1 and 2, with tenors of 270 days and 364 days. The transaction represents the first issuance under its ₦100 billion commercial paper programme, establishing a potential channel for future short-term fundraising.
Commercial paper backed by credit ratings
United Nigeria Airlines secured an A3 short-term rating and BBB- long-term rating, with a stable outlook, from Agusto & Co. Meanwhile, DataPro assigned the airline short-term and long-term ratings of A1 and BBB, respectively. These assessments provide investors with independent evaluations of the airline’s creditworthiness.
Meristem Capital Limited will serve as lead arranger for the transaction. The dealers are Cordros Advisory Services Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, FSL Advisory Limited and Quantum Zenith Capital & Investments Limited.
The proposed ₦20 billion fundraising marks a significant development for Nigeria’s domestic aviation sector. However, borrowing costs and investor appetite will influence the transaction’s overall financial implications.
Revenue growth strengthens financial position
United Nigeria Airlines has recorded substantial growth in revenue and profitability. Its revenue increased from ₦10.3 billion in financial year 2021 to ₦90.8 billion in 2025. Profit after tax also rose from ₦1.3 billion to ₦23.8 billion over the same period.
The airline recorded revenue of ₦95.6 billion in the first half of 2026. Its August performance remained resilient, with turnover rising to ₦19.4 billion from ₦14.1 billion in July. In addition, the carrier returned to a net profit of ₦1.2 billion during August.
The airline expressed optimism that its performance would maintain an upward trajectory through the remainder of 2026 and beyond. Sustaining profitability will be important as it manages operating costs and future funding obligations.
Fleet and international network
United Nigeria Airlines currently operates 10 aircraft, comprising Embraer ERJ-145s, Boeing 737-800s, Embraer E190s and CRJ900s. The airline plans to receive six additional aircraft before the end of 2026.
The carrier serves 14 destinations across Nigeria and Ghana. It has also secured approval to operate as a flag carrier to six international destinations, broadening its potential reach beyond its existing network.
In addition, the airline has secured global distribution system agreements with Amadeus and Sabre. These agreements allow travel agents worldwide to access its ticket inventory, potentially improving international sales and customer access.
Commercial paper supports funding strategy
United Nigeria Airlines has maintained International Air Transport Association Operational Safety Audit (IOSA) certification since 2022 and remains an IATA member airline. In 2026, it signed the IATA Multilateral Interline Traffic Agreement and became a full member of the African Airlines Association.
These industry affiliations complement the airline’s commercial and operational development. The proposed commercial paper issuance would introduce a capital-market funding channel that could support its financial requirements.
The success of the ₦20 billion transaction will depend on investor confidence, borrowing costs and the airline’s ability to sustain earnings. Effective financial management will be essential as it balances operational demands with repayment obligations.
If successfully executed, the issuance could establish a foundation for further fundraising under the wider ₦100 billion programme. It would also mark a significant milestone for United Nigeria Airlines and domestic aviation financing in Nigeria.
