United Nigeria Airlines said it intends to raise N20 billion through commercial paper, which it described as the first of its kind by a domestic airline in Nigeria, as it seeks to strengthen its finances and fund expansion. The proposed issuance is the first tranche of a N100 billion commercial paper programme, and will comprise two series with tenors of 270 and 364 days, according to a statement by the airline’s management on Friday.
Commercial paper is a short-term debt instrument companies use to raise funds for working capital and other business needs. Unlike equity financing, it involves borrowing that must be repaid based on agreed terms. According to the airline, the proposed issuance is part of its strategy to strengthen its financial position while expanding operations across domestic, regional, and international markets.
Meristem Capital Limited will serve as the lead arranger, while Cordros Advisory Services Limited, Coronation Merchant Bank Limited, FCMB Capital Markets Limited, FSL Advisory Limited and Quantum Zenith Capital and Investments Limited will act as dealers. United Nigeria Airlines said it has obtained credit ratings from two agencies for the proposed issuance. According to the airline, Agusto & Co. assigned it an A3 short-term rating and a BBB- long-term rating, both with a stable outlook.
DataPro assigned the airline an A1 short-term rating and a BBB long-term rating. The ratings provide investors with an assessment of the airline’s creditworthiness, although they do not guarantee repayment or eliminate the risks associated with investing in the commercial paper. The airline’s September 2026 investor presentation showed substantial growth in its financial performance over the past five years.
Revenue rose from N10.3 billion in 2021 to N90.8 billion in 2025, while profit after tax increased from N1.3 billion to N23.8 billion over the same period.