United Nigeria Airlines (UNA) has successfully raised N22 billion from the first tranche of its N100 billion Commercial Paper (CP) programme. The airline announced that the issuance was oversubscribed, with investor demand exceeding the targeted amount by more than N5 billion. This development reflects confidence in UNA's financial performance, business model, growth strategy, and credit profile. The successful completion of the first tranche marks a significant milestone in Nigeria's aviation industry.
The commercial paper issuance was structured into two series, with tenors of 270 days and 364 days, providing investors with different investment maturity options. The programme received credit assessments from two rating agencies, Agusto & Co. and DataPro, which assigned ratings indicating the airline's credit standing. Agusto & Co. assigned UNA short-term and long-term ratings of A3 and BBB- respectively, with a stable outlook. DataPro awarded the airline short-term and long-term ratings of A1 and BBB respectively.
The Managing Director of United Nigeria Airlines, Mazi Osita Okonkwo, expressed appreciation to investors who participated in the exercise. He stated that the level of demand demonstrated confidence in the airline's business model, financial performance, and expansion plans. Okonkwo said the proceeds from the issuance would be deployed towards supporting the airline's fleet expansion and operational requirements. The airline currently operates flights to 14 destinations across Nigeria and Ghana and is finalising plans to expand its regional network.
The airline's Chairman, Prof Obiorah Okonkwo, and the Managing Director of Meristem Capital Limited, Rasaki Salawu, have expressed satisfaction with the transaction. Salawu confirmed the successful completion of the transaction and noted that the investment firm was pleased to have served as Lead Issuing House for the registration of UNA's N100 billion Commercial Paper Programme and the debut issuance under Series 1 and 2. The transaction attracted considerable interest from different categories of investors.
The successful fundraising comes as United Nigeria Airlines intensifies efforts to strengthen its domestic operations, expand its international presence, and improve its competitiveness in the regional aviation market. The airline has been an IATA member since 2022 and is also a full member of the African Airlines Association (AFRAA). In 2026, the airline signed the IATA Multilateral Interline Traffic Agreement, a development expected to enhance its ability to establish commercial partnerships with other airlines.
United Nigeria Airlines is an International Air Transport Association (IATA) Operational Safety Audit (IOSA)-certified operator. The airline has secured Global Distribution System (GDS) agreements with Amadeus and Sabre, enabling travel agents across the world to access its ticket inventory. The agreements are expected to improve the airline's international market visibility, expand its distribution channels, and make its services more accessible to passengers outside its existing operating network.
The N22 billion fundraising represents a significant step in UNA's efforts to mobilise capital for fleet development, working capital, and operational expansion through Nigeria's capital market. It also introduces commercial paper as an additional financing option for the country's aviation industry, where airlines have traditionally faced significant funding challenges. The airline plans to continue strengthening its relationship with the investment community through the commercial paper programme and other capital market initiatives.
Key points
- United Nigeria Airlines raises N22bn from oversubscribed commercial paper issuance.
- The airline's successful fundraising will support fleet expansion and operational requirements.
- The commercial paper programme introduces a new financing option for Nigeria's aviation industry.
