By Dickson Omobola
United Nigeria Airlines Company Limited is set to become the first domestic airline to issue commercial paper, with an initial tranche of N20 billion under its N100 billion programme.
According to its September 2026 investor presentation, which outlined its financial performance and five-year expansion strategy, the commercial paper will be issued in Series 1 and 2, with tenors of 270 days and 364 days, respectively. The proposed issuance will be the first under the airline’s N100 billion commercial paper programme.
Meristem Capital Limited will serve as 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 issuance comes as the airline seeks to strengthen its financial position and expand its domestic, regional and international operations.
United Nigeria Airlines has also secured investment-grade ratings from two rating agencies. Agusto & Co. assigned the airline a short-term rating of A3 and a long-term rating of BBB-, with a stable outlook, while DataPro assigned it short-term and long-term ratings of A1 and BBB, respectively.
The airline’s financial performance has recorded significant growth, with revenue rising from N10.3 billion in the 2021 financial year to N90.8 billion in 2025.
Profit after tax also increased from N1.3 billion to N23.8 billion over the same period.
The airline recorded revenue of N95.6 billion in the first half of 2026. Its August performance also showed an improvement, with turnover rising to N19.4 billion from N14.1 billion in July, while it returned to a net profit of N1.2 billion.
The airline expressed optimism that its performance would continue on an upward trajectory for the rest of the year and beyond.
United Nigeria Airlines currently operates 10 aircraft, including Embraer ERJ-145s, Boeing 737-800s, Embraer E190s and CRJ900s. It plans to take delivery of six additional aircraft before the end of the year.
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