CHUKS OKOH,
In a major milestone for the Nigerian aviation sector, United Nigeria Airlines Company Limited is set to become the first domestic operator to issue a commercial paper, rolling out an initial tranche of ₦20 billion.
The issuance represents Series 1 and 2 under the airline’s ambitious ₦100 billion Commercial Paper Programme, according to details disclosed in its September 2026 investor presentation detailing its financial growth and five-year strategic expansion map. The issuance features tenors of 270 days and 364 days.
Meristem Capital Limited serves as the lead arranger for the transaction, supported by a syndicate of dealers including Cordros Advisory Services Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, FSL Advisory Limited, and Quantum Zenith Capital & Investments Limited. The landmark capital raise is aimed at fortifying the carrier’s financial base while accelerating its expansion across domestic, regional, and international routes.
Underscoring market confidence in its operations, United Nigeria Airlines secured solid investment-grade ratings from premier rating agencies. Agusto & Co. assigned the carrier an A3 short-term rating and a BBB- long-term rating with a stable outlook, while DataPro rated the airline A1 (short-term) and BBB (long-term).
Strong Financial Momentum
The airline’s foray into the debt capital market follows a period of rapid financial growth. Revenue surged dramatically from ₦10.3 billion in FY2021 to ₦90.8 billion in FY2025, with Profit After Tax (PAT) climbing from ₦1.3 billion to ₦23.8 billion over the same four-year period.
The upward trajectory has sustained through 2026. The airline recorded a strong revenue performance of ₦95.6 billion in the first half of the year (H1 2026). Monthly turnover jumped from ₦14.1 billion in July to ₦19.4 billion in August, delivering a net profit of ₦1.2 billion for the month. Management expressed optimism that operational performance will maintain this momentum through the remainder of the year and beyond.
Fleet Expansion and Global Reach
United Nigeria Airlines currently operates a fleet of 10 aircraft, comprising Embraer ERJ-145s, Boeing 737-800s, Embraer E190s, and CRJ900s. To support growing passenger demand, the carrier plans to take delivery of six additional aircraft before the close of the year.
While currently connecting 14 destinations across Nigeria and Ghana, the airline has secured regulatory approval to operate as a designated flag carrier to six international destinations.
To streamline global ticketing and distribution, the airline recently finalized Global Distribution System (GDS) integration agreements with Amadeus and Sabre, enabling travel agencies worldwide to sell its inventory directly. An IATA member and IOSA-certified operator since 2022, United Nigeria Airlines further bolstered its international standing in 2026 by signing the IATA Multilateral Interline Traffic Agreement and becoming a full member of the African Airlines Association (AFRAA).
