United Nigeria Airlines to Launch N20 Billion Commercial Paper Initiative

United Nigeria Airlines Company Limited is poised to make history as the first domestic airline in Nigeria to issue commercial paper, with an initial tranche amounting to N20 billion. This strategic move is part of the airline's broader financial strategy aimed at bolstering its position in the competitive aviation market.

The announcement, made during the airline's investor presentation in September 2026, outlines a comprehensive five-year expansion plan alongside its financial performance. The commercial paper will be issued in two series, with tenors of 270 days and 364 days, marking the first issuance under the airline's ambitious ₦100 billion commercial paper program.

Leading the transaction is Meristem Capital Limited, with a consortium of financial institutions including Cordros Advisory Services Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, FSL Advisory Limited, and Quantum Zenith Capital & Investments Limited acting as dealers. This issuance is expected to significantly enhance the airline's financial standing while facilitating its expansion into domestic, regional, and international markets.

In a testament to its financial health, United Nigeria Airlines has received investment-grade ratings from two reputable agencies. Agusto & Co. assigned a short-term rating of A3 and a long-term rating of BBB- with a stable outlook, while DataPro provided the airline with short-term and long-term ratings of A1 and BBB, respectively.

The airline's financial trajectory has been impressive, with revenue soaring from N10.3 billion in the fiscal year 2021 to N90.8 billion by 2025. Profit after tax also saw a remarkable increase, rising from N1.3 billion to N23.8 billion during the same period. In the first half of 2026 alone, United Nigeria Airlines reported revenue of N95.6 billion, with a notable recovery in August, where turnover climbed to N19.4 billion from N14.1 billion in July, resulting in a net profit of N1.2 billion.

Looking ahead, the airline is optimistic about maintaining this upward trend for the remainder of the year and beyond. Currently, United Nigeria Airlines operates a fleet of 10 aircraft, including models such as the Embraer ERJ-145, Boeing 737-800, Embraer E190, and CRJ900. The airline plans to expand its fleet further by acquiring six additional aircraft before the year's end.

United Nigeria Airlines currently services 14 destinations across Nigeria and Ghana and has recently received approval to operate as a flag carrier to six international destinations. Additionally, the airline has entered into Global Distribution System (GDS) agreements with Amadeus and Sabre, enabling travel agents worldwide to access its ticket inventory. Since becoming an IOSA certified operator in 2022 and joining the International Air Transport Association (IATA), the airline has also signed the IATA Multilateral Interline Traffic Agreement and is now a full member of the African Airlines Association.

This commercial paper initiative not only marks a significant milestone for United Nigeria Airlines but also reflects the airline's commitment to enhancing its operational capabilities and expanding its market reach in a rapidly evolving aviation landscape.