United Nigeria Airlines Plans N20bn Commercial Paper Debt

Commercial Paper Issuance

United Nigeria Airlines is preparing to raise N20bn in capital through the first two series of a broader N100bn commercial paper programme. According to the airline's September 2026 investor presentation, the issuance will feature tenors of 270 days and 364 days. If the transaction proceeds as planned, it will establish the airline as the first domestic operator in Nigeria to utilize commercial paper as a financing instrument.

Meristem Capital Limited is acting as the lead arranger for the programme. The dealer group includes Cordros Advisory Services Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, FSL Advisory Limited, and Quantum Zenith Capital & Investments Limited.

Credit Ratings and Financial Performance

To support the issuance, the airline has secured credit ratings from two agencies. Agusto & Co. has assigned the carrier short-term and long-term ratings of A3 and BBB-, respectively, with a stable outlook. DataPro has provided ratings of A1 for the short term and BBB for the long term. Agusto & Co. credit rating

Financial data disclosed in the investor presentation indicates significant growth. Revenue increased from N10.3bn in 2021 to N90.8bn in 2025, while profit after tax rose from N1.3bn to N23.8bn over that period. For the first half of 2026, the airline reported revenue of N95.6bn. August 2026 turnover reached N19.4bn, up from N14.1bn in July, with a reported net profit of N1.2bn for the month.

Operational Scope and Fleet Expansion

United Nigeria Airlines currently operates a fleet of 10 aircraft, comprising Embraer Regional Jet (ERJ)-145s, a Boeing 737-800, Embraer E190s, and CRJ900s. The carrier plans to take delivery of six additional aircraft before the end of 2026, subject to financing and regulatory requirements. The airline serves 14 destinations across Nigeria and Ghana and has secured approval to operate to six international locations as a designated flag carrier.

Operational infrastructure has been bolstered by Global Distribution System (GDS) agreements with Amadeus and Sabre. The airline has maintained its International Air Transport Association (IATA) Operational Safety Audit (IOSA) certification since 2022 and is an IATA member. In 2026, the carrier signed the IATA Multilateral Interline Traffic Agreement (MITA) and became a full member of the African Airlines Association (AFRAA).