United Nigeria Airlines (UNA) has raised N22 billion through its debut commercial paper (CP) issuance, exceeding its initial N20 billion target following strong investor demand.
According to the airline, the issuance represents the first tranche of its N100 billion commercial paper programme, marking its entry into Nigeria’s short-term debt market.
The airline accepted an additional 10% above its original target and returned the remaining subscription funds to investors, as it seeks to strengthen working capital and support fleet expansion.
United Nigeria Airlines attracts strong demand:
United Nigeria Airlines’ debut commercial paper issuance attracted demand exceeding the initial N20 billion target by more than N5 billion, according to Meristem Capital Limited.
The airline, however, limited the additional allotment to N2 billion, bringing the total issuance to N22 billion.
- “The level of demand we received is a clear endorsement of our business model, and financial performance as well as the confidence the market has in our growth plans,” Managing Director Mazi Osita Okonkwo said.
Okonkwo added that the proceeds would support fleet expansion and operations, while thanking investors for their participation.
Rasaki Salawu, Managing Director of Meristem Capital Limited, which acted as Lead Issuing House, described the transaction as Nigeria’s first commercial paper issuance by an airline.
He said the offer attracted asset managers, insurance companies and high-net-worth individuals, with the decision to limit additional allotments reflecting financial prudence.
The issuance comprised two series with tenors of 270 and 364 days, while Agusto & Co. assigned A3 and BBB- short-term and long-term ratings, respectively, with a stable outlook.
DataPro assigned A1 and BBB ratings for the respective tenors, while Cordros Capital and other dealers also participated in the transaction.
Airline revenue reaches N95.6 billion:
The commercial paper issuance follows significant growth in United Nigeria Airlines’ financial performance over the past five years.
- Nairametrics had earlier reported that the airline’s revenue increased from N10.3 billion in 2021 to N90.8 billion in 2025, while profit after tax rose from N1.3 billion to N23.8 billion.
- Revenue reached N95.6 billion in the first half of 2026, exceeding the N90.8 billion recorded for the entire 2025 financial year.
- August turnover increased to N19.4 billion from N14.1 billion in July, while the airline recorded a net profit of N1.2 billion.
Nigerian companies raised N1.61 trillion through commercial paper in 2025, representing a 40% increase from N1.15 trillion in 2024, according to Nairametrics Research.
The average commercial paper discount rate increased to 22.38% in 2025 from 21.69% in 2024, while the average tenor rose to 233 days from 225 days.
The airline’s fundraising forms part of its five-year expansion strategy covering domestic, regional and international operations.
Commercial paper provides companies with short-term financing for working capital and operational requirements, although the borrowed funds must be repaid at maturity.
The growing use of commercial paper among Nigerian companies reflects its role as an alternative to conventional bank borrowing, with funding costs and repayment capacity remaining important considerations for investors.
United Nigeria Airlines targets fleet expansion:
United Nigeria Airlines currently operates 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, potentially increasing its fleet to 16 aircraft if the deliveries are completed as scheduled.
- UNA currently serves 14 destinations across Nigeria and Ghana and has approvals to operate as a flag carrier to six international destinations.
- The airline has secured Global Distribution System agreements with Amadeus and Sabre, allowing travel agents worldwide to access its ticket inventory.
It is an International Air Transport Association (IATA) Operational Safety Audit-certified operator and has been an IATA member since 2022.
In 2026, UNA signed the IATA Multilateral Interline Traffic Agreement, which supports cooperation between airlines on passenger bookings and connections.
The airline is also a full member of the African Airlines Association, strengthening its participation in regional aviation industry activities.
The planned aircraft deliveries and route expansion are expected to support its broader growth strategy, alongside continued engagement with investors through commercial paper and other capital market programmes.
The N22 billion issuance therefore represents an important step in the airline’s capital market access, while its ability to manage funding obligations and execute fleet expansion plans will remain key considerations for investors.
