In a landmark transaction for the Nigerian aviation sector, United Nigeria Airlines Company Limited has officially entered the short-term capital market with the launch of its Series 1 and Series 2 Commercial Paper (CP) issuance, aiming to raise up to ₦20 billion.
The issuance, which opened on October 13, 2026, and is scheduled to close on October 20, 2026, marks the first time a domestic Nigerian airline has accessed the short-term debt market through a commercial paper instrument. The offer represents the debut tranche under the carrier’s broader ₦100 billion Commercial Paper Programme registered on the financial market platform.
According to statements released in Lagos on Friday, October 16, 2026, the net proceeds from the debt issuance will be deployed to support the carrier’s short-term working capital needs and fund its ongoing operational expansion.
The fundraising structure offers two distinct options for investors; Series 1: 270-day tenor and Series 2: 364-day tenor.
The transaction is being orchestrated by Meristem Capital Limited acting as the lead arranger, supported by a syndicate of participating dealers including Cordros Advisory Services Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, FSL Advisory Limited, and Quantum Zenith Capital & Investments Limited.
To reinforce investor confidence, United Nigeria Airlines secured investment-grade credit assessments from leading rating firms: Agusto & Co., Assigned an A3 short-term rating and a BBB- long-term rating with a stable outlook. DataPro Limited: Assigned an A1 short-term rating and a BBB long-term rating.
The capital market move follows a period of robust top-line growth for the airline. Financial data accompanying the presentation reveals that annual revenue expanded from ₦10.3 billion in FY2021 to ₦90.8 billion in FY2025, representing a Compound Annual Growth Rate (CAGR) of approximately 72 percent. Over the same period, Profit After Tax (PAT) grew from ₦1.3 billion to ₦23.8 billion.
The carrier’s strong performance carried into 2026, recording ₦95.6 billion in revenue during the first half of the year alone, surpassing its full-year 2025 figures. Monthly performance in August 2026 showed a turnover of ₦19.4 billion (up from ₦14.1 billion in July), delivering a monthly net profit of ₦1.2 billion. Total balance sheet assets rose to ₦67.16 billion by FY2025, supported by total equity of ₦39.04 billion.
Speaking on the company’s trajectory, executive management noted that accessing the capital market aligns with a five-year growth plan to strengthen balance sheet liquidity while expanding route networks.
United Nigeria Airlines currently operates a fleet of 10 aircraft, comprising Embraer ERJ-145s, Boeing 737-800s, Embraer E190s, and CRJ900s, servicing 14 domestic and regional routes across Nigeria and Ghana. The airline plans to take delivery of six additional aircraft before the end of 2026.
Having recently secured flag-carrier approvals, signed the IATA Multilateral Interline Traffic Agreement, and attained full membership in the African Airlines Association (AFRAA), the airline is positioning itself to launch long-haul international flights to destinations including the UK, US, Canada, Turkey, Italy, and the Netherlands, subject to final regulatory clearances.
