By Joyce Ekeh
United Nigeria Airlines Company Limited is targeting Nigeria’s ₦100 billion commercial paper market, with an initial ₦20 billion issuance planned as the domestic carrier seeks to strengthen its finances and fund its expansion.
The proposed issuance, which would make United Nigeria Airlines the first domestic airline in Nigeria to issue commercial paper, comprises two series with tenors of 270 days and 364 days, according to the airline’s September 2026 investor presentation.
The two series will constitute the first tranche under the airline’s ₦100 billion commercial paper programme.
Meristem Capital Limited will serve as lead arranger, while Cordros Advisory Services Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, FSL Advisory Limited and Quantum Zenith Capital & Investments Limited will act as dealers.
The planned fundraising comes as the airline pursues an expansion strategy covering domestic, regional and international operations.
Revenue hits ₦95.6bn in first half of 2026
United Nigeria Airlines’ financial performance has recorded substantial growth since it began operations, with revenue rising from ₦10.3 billion in the 2021 financial year to ₦90.8 billion in 2025.
Profit after tax also increased from ₦1.3 billion to ₦23.8 billion over the same period, reflecting the growth reported by the airline.
In the first half of 2026, the carrier generated revenue of ₦95.6 billion.
Its August performance also improved, with turnover rising to ₦19.4 billion from ₦14.1 billion in July. The airline also returned to a net profit of ₦1.2 billion in August.
The company expressed optimism that its financial performance would maintain an upward trajectory for the rest of 2026 and beyond.
Airline secures ratings from two agencies
The airline has also secured credit ratings from Agusto & Co. and DataPro as it prepares to access the commercial paper market.
Agusto & Co. assigned United Nigeria Airlines a short-term rating of A3 and a long-term rating of BBB-, with a stable outlook.
DataPro assigned the airline short-term and long-term ratings of A1 and BBB, respectively.
The ratings form part of the financial information outlined in the airline’s investor presentation ahead of the proposed issuance.
United Nigeria Airlines plans to add six aircraft
As part of its expansion strategy, United Nigeria Airlines currently operates a fleet of 10 aircraft comprising Embraer ERJ-145s, Boeing 737-800s, Embraer E190s and CRJ900s.
The airline plans to take delivery of six additional aircraft before the end of 2026, a move expected to support its capacity expansion and broader operational ambitions.
The proposed commercial paper programme, alongside its reported revenue growth and planned fleet expansion, represents a key component of the carrier’s efforts to strengthen its financial position as it seeks to increase its presence in Nigeria’s aviation market.
