United Nigeria Airlines (UNA) has raised ₦22 billion through the debut issuance of its Commercial Paper (CP) programme, marking a new financing milestone for the Nigerian aviation industry.
The airline secured the funds through the first tranche of its ₦100 billion programme, which attracted subscriptions exceeding the initial target of ₦20 billion. Investor demand surpassed the offer by more than ₦5 billion, prompting the airline to increase the amount raised by 10 per cent to ₦22 billion.
In response to the strong demand, UNA said it returned the remaining excess subscriptions to investors whose applications could not be fully accommodated.
The transaction, structured into two series with tenors of 270 and 364 days, was described by financial adviser Meristem Capital Limited as the first commercial paper issuance by an airline in Nigeria.
Managing Director of United Nigeria Airlines, Mazi Osita Okonkwo, said the level of investor interest reflected confidence in the airline’s business model, financial performance and expansion strategy.
He explained that the proceeds would support the carrier’s fleet expansion, working capital and operational requirements as it pursues its growth plans.
“The level of demand we received is a clear endorsement of our business model and financial performance, as well as the confidence the market has in our growth plans,” Okonkwo said.
He thanked investors who participated in the exercise, adding that the airline would continue to engage the investment community through the commercial paper programme and other capital market initiatives.
Managing Director of Meristem Capital Limited, Rasaki Salawu, said the firm acted as Lead Issuing House for the registration of the ₦100 billion programme and the debut issuance under Series 1 and 2.
According to Salawu, the offer attracted investors across different categories, including asset managers, insurance companies and high-net-worth individuals. He said the decision to limit the increase to 10 per cent, despite excess demand of more than ₦5 billion, demonstrated the airline’s financial discipline.
The issuance received credit assessments from Agusto & Co. and DataPro. Agusto & Co. assigned the airline short-term and long-term ratings of A3 and BBB-, respectively, with a stable outlook, while DataPro awarded ratings of A1 and BBB.
Salawu added that the successful transaction would contribute to the airline’s expansion objectives. He also acknowledged the roles played by Cordros Capital and other dealers in completing the exercise.
The fundraising comes as United Nigeria Airlines advances plans to expand its domestic and regional operations. The carrier currently serves 14 destinations across Nigeria and Ghana and is working to extend its regional network. It also has approvals to operate as a flag carrier on six international routes.
The airline has also pursued partnerships and industry affiliations aimed at improving its international connectivity and distribution. It has been a member of the International Air Transport Association (IATA) since 2022 and is an International Air Transport Association Operational Safety Audit (IOSA)-certified operator. It is also a full member of the African Airlines Association (AFRAA).
In 2026, UNA signed the IATA Multilateral Interline Traffic Agreement, creating opportunities for commercial partnerships with other airlines and improved passenger connections across different networks. It also secured Global Distribution System agreements with Amadeus and Sabre, allowing travel agents internationally to access its ticket inventory.
The ₦22 billion capital raise provides the airline with an additional source of funding for fleet development and operational needs, while introducing commercial paper as a financing option for Nigeria’s aviation sector. Airlines in the country have traditionally faced substantial funding demands associated with aircraft acquisition, maintenance, fuel, insurance and other operating costs.
