BY OLAPEJU OLUBI
Barring any unforeseen circumstances, United Nigeria Airlines Company Limited will become the first domestic airline in Nigeria to issue commercial paper, targeting ₦20 billion in its first fundraising exercise to finance its expansion plans.
Commercial paper is a short-term loan that a company raises from investors to meet its financial needs.
In simple terms, instead of borrowing from a bank, a company raises money directly from investors and promises to repay it, usually with interest, within an agreed period.
The airline said it will raise the funds through Series 1 and 2 of a ₦100 billion commercial paper programme, with maturity periods of 270 days and 364 days, respectively.
According to its September 2026 investor presentation, the proposed issuance is part of efforts to strengthen its finances and support the expansion of its domestic, regional and international operations.
Meristem Capital Limited is the lead arranger for the transaction, while Cordros Advisory Services Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, FSL Advisory Limited and Quantum Zenith Capital & Investments Limited will serve as dealers.
The airline has also secured credit ratings from two rating agencies, Agusto & Co. and DataPro, in a development that could boost investor confidence in the proposed fundraising.
Agusto & Co. assigned the airline a short-term rating of A3 and a long-term rating of BBB-, both with a stable outlook. DataPro gave it short-term and long-term ratings of A1 and BBB, respectively.
The fundraising plan comes amid strong growth in the airline’s revenue and profitability.
United Nigeria Airlines grew its revenue from ₦10.3 billion in 2021 to ₦90.8 billion in 2025, while profit after tax rose from ₦1.3 billion to ₦23.8 billion over the same period.
Its revenue reached ₦95.6 billion in the first half of 2026, according to the presentation.
The airline also recorded an improvement in its August performance, with turnover rising to ₦19.4 billion from ₦14.1 billion in July. It returned to a net profit of ₦1.2 billion in August.
The company expressed optimism that its performance would continue to improve in the remaining months of the year and beyond.
As part of its expansion drive, United Nigeria Airlines currently operates 10 aircraft, including Embraer ERJ-145, Boeing 737-800, Embraer E190 and CRJ900 aircraft. It plans to take delivery of six additional aircraft before the end of the year.
The airline serves 14 destinations across Nigeria and Ghana and has secured approval to operate as a flag carrier to six international destinations.
It has also signed agreements with global distribution systems, Amadeus and Sabre, allowing travel agents worldwide to access its ticket inventory and book its flights.
United Nigeria Airlines has been an International Air Transport Association (IATA) Operational Safety Audit (IOSA)-certified operator since 2022 and is a member of IATA.
In 2026, it signed the IATA Multilateral Interline Traffic Agreement, which facilitates cooperation between airlines in handling connecting journeys, and became a full member of the African Airlines Association.
Olapeju is a journalist and aviation reporter.
