United Nigeria becomes first domestic airline to issue commercial paper, targets N20bn

United Nigeria Airlines is set to become Nigeria’s first domestic airline to issue a commercial paper targeting N20 billion in its first tranche under a N100 billion programme.

United Nigeria Airlines announced this in a statement on Friday, October 16, 2026.

The airline said the proposed issuance, comprising Series 1 and 2 with tenors of 270 and 364 days respectively, is part of the airline’s strategy to strengthen its financial position and fund its expansion plans.

The airline noted that the transaction would be arranged by Meristem Capital Limited.

It said Cordros Advisory Services Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, FSL Advisory Limited, and Quantum Zenith Capital and Investments Limited would serve as dealers.

United Nigeria said the development comes as it pursues expansion of its domestic, regional and international operations.

United Nigeria disclosed that it had secured credit ratings from two agencies ahead of the proposed issuance.

“Agusto & Co. assigned the airline A3 short-term rating and BBB- long-term rating, both with a stable outlook, while DataPro rated it A1 for the short term and BBB for the long term,” it said.

The airline said its investor presentation showed significant growth in its financial performance, with revenue rising from N10.3 billion in 2021 to N90.8 billion in 2025.

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The airline also disclosed that its profit after tax increased from N1.3 billion to N23.8 billion over the same period.

It added that it recorded a revenue of N95.6 billion in the first half of 2026.

United Nigeria noted that its August performance showed an improvement, with turnover increasing to N19.4 billion from N14.1 billion in July, while the airline returned to a net profit of N1.2 billion.

The company expressed optimism that its performance would continue on an upward trajectory.

The airline serves 14 destinations across Nigeria and Ghana and has secured approval to operate as a flag carrier to six international destinations.

In 2026, it signed the IATA Multilateral Interline Traffic Agreement and became a full member of the African Airlines Association.