United Nigeria Airlines raises ₦22bn in first airline commercial paper sale

United Nigeria Airlines has raised ₦22 billion through its first commercial paper sale, the first time a Nigerian airline has used the short-term debt market, according to its financial adviser Meristem Capital.

The offer was the first tranche of a ₦100 billion commercial paper programme. The airline had targeted ₦20 billion but investors asked for more than ₦5 billion extra, the company said.

Rather than take all the money, the airline accepted only 10 per cent of the excess and returned the rest to subscribers it could not fully allot to.

Why it matters to travellers

The airline said the money will go into working capital and fleet expansion. It currently flies 10 aircraft to 14 destinations in Nigeria and Ghana, and plans to take delivery of six more planes before the end of 2026. If those deliveries arrive as scheduled, the fleet would grow to 16.

United Nigeria also has approval to operate as a flag carrier to six international destinations, and has distribution deals with Amadeus and Sabre so travel agents abroad can sell its tickets.

Managing Director Mazi Osita Okonkwo said the demand showed confidence in the airline. "The proceeds will support fleet expansion and operations," he said, thanking the investors who took part.

Meristem Capital Managing Director Rasaki Salawu said the sale drew asset managers, insurance companies and high-net-worth individuals. He described the decision to cap the increase at 10 per cent as a sign of financial discipline.

The paper was issued in two series, with tenors of 270 days and 364 days. Agusto & Co. rated it A3 in the short term and BBB- in the long term with a stable outlook, while DataPro gave A1 and BBB. Cordros Capital and other dealers also took part.

The numbers behind the raise

The fundraising follows rapid growth at the airline. Its revenue rose from ₦10.3 billion in 2021 to ₦90.8 billion in 2025, with profit after tax climbing from ₦1.3 billion to ₦23.8 billion over the same period, according to Nairametrics.

Revenue hit ₦95.6 billion in the first half of 2026 alone, already above the full-year 2025 figure. August turnover was ₦19.4 billion, up from ₦14.1 billion in July, with a net profit of ₦1.2 billion.

Commercial paper is short-term borrowing that companies must repay when it matures, so the airline's ability to meet those repayments and deliver the new aircraft will matter to investors. Nigerian firms raised ₦1.61 trillion through commercial paper in 2025, up 40 per cent from ₦1.15 trillion in 2024, Nairametrics Research found.

What happens next: Watch for the six expected aircraft deliveries before the end of 2026 and for further tranches under the ₦100 billion programme.