United Nigeria Airlines has announced plans to raise N20 billion using commercial paper. This is the first time a local airline in Nigeria is doing this. The money will help the airline boost its finances and expand its operations.
The commercial paper is the first part of a N100 billion plan. It will include two series with tenors of 270 and 364 days. This information comes from a statement by the airline's management on Friday.
Commercial paper is a short-term loan that companies use to raise money for their daily operations and other needs. Unlike selling shares, this method involves borrowing that the company must pay back based on agreed terms.
The airline said this move is part of its strategy to improve its financial situation while growing its operations in Nigeria, the region, and internationally.
Meristem Capital Limited will lead the arrangement for the issuance. Other dealers involved are Cordros Advisory Services Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, FSL Advisory Limited, and Quantum Zenith Capital and Investments Limited.
United Nigeria Airlines also mentioned that it received credit ratings from two agencies for this issuance. Agusto & Co. gave it an A3 short-term rating and a BBB- long-term rating, both with a stable outlook. DataPro assigned an A1 short-term rating and a BBB long-term rating to the airline.
These ratings help investors understand the airline's creditworthiness. But they do not guarantee repayment or remove the risks that come with investing in commercial paper.
In its investor presentation for September 2026, the airline showed strong growth in its finances over the last five years. Revenue jumped from N10.3 billion in 2021 to N90.8 billion in 2025. Profit after tax also climbed from N1.3 billion to N23.8 billion in the same period.
The airline reported revenue of N95.6 billion for the first half of 2026. It also noted that turnover increased to N19.4 billion in August from N14.1 billion in July. Furthermore, it recorded a net profit of N1.2 billion in August.
The airline is optimistic that its financial performance will keep improving.
Plans for fleet expansion
Currently, the airline has ten aircraft, including Embraer ERJ-145s, Boeing 737-800s, Embraer E190S, and CRJ900s. They plan to add six more aircraft by the end of the year.
United Nigeria Airlines operates flights to fourteen destinations in Nigeria and Ghana. The airline has also received approval to operate as a flag carrier to six international destinations.
The expansion of the fleet aims to increase capacity and reach beyond the local market. However, how and when this expansion happens will depend on the airline's ability to secure funding, receive the new aircraft, and meet regulatory requirements.
The airline is also working to increase its access to international travel networks. It has signed agreements with Amadeus and Sabre. These are systems that travel agents and service providers use to get airline schedules and ticket information.
In April, United Nigeria Airlines became part of the International Air Transport Association’s Multilateral Interline Traffic Agreement. This agreement helps airlines work together on passenger bookings and connections.
In June, the airline joined the African Airlines Association. This group promotes cooperation and development in Africa’s aviation industry.
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