United Nigeria Airlines opens N20bn commercial paper offer to fund expansion

United Nigeria Airlines Company Limited has opened a N20 billion Series 1 and Series 2 commercial paper issuance under its N100 billion Commercial Paper Issuance Programme to support its working capital requirements and expansion plans.

Meristem Capital Limited is arranging the offer, which marks the airline’s debut commercial paper issuance as it prepares to expand its fleet, increase flight frequencies and strengthen its regional and international operations.

The airline said its next phase of growth would require additional working capital to support its expanding operations.

Incorporated in 2008, United Nigeria Airlines commenced commercial operations in 2021 and has since developed a growing domestic network connecting major commercial centres and underserved destinations across the country.

The company currently operates 10 aircraft across four aircraft types: Embraer ERJ-145, Boeing 737-800, Embraer E190 and CRJ900. Its fleet comprises both company-owned aircraft and those operated under aircraft, crew, maintenance and insurance (ACMI) arrangements.

The airline serves 13 locations across Nigeria, covering the Southeast, Northwest and parts of the Southwest and North Central regions. In November 2025, it commenced regional flights to Accra, Ghana, marking its entry into international regional operations.

United Nigeria Airlines’ expansion has been accompanied by significant growth in revenue, profitability and passenger traffic.

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Its revenue increased from N10.3 billion in 2021 to N90.8 billion in 2025, representing a compound annual growth rate of approximately 72 per cent. Profit after tax also rose from N1.3 billion to N23.8 billion over the same period.

In the 2025 financial year, revenue grew by 61 per cent, while gross profit margin expanded from 19 per cent to 38 per cent, reflecting revenue growth that outpaced the increase in direct costs.

The airline’s total assets rose from N6.23 billion in 2021 to N67.16 billion in 2025, while total equity increased to N39.04 billion from an earlier level of N1.82 billion, according to the figures provided for the offer.

Operational activity also expanded significantly during the period. The number of flights operated annually increased from 6,853 in 2021 to 18,393 in 2025, while passenger traffic tripled from 212,373 to 637,670.

Building on the growth, the airline has acquired two Boeing 737-800 aircraft and plans to further expand its fleet, increase flight frequencies and deepen its regional presence.

It is also working towards launching international services to approved routes in the United Kingdom, the United States, Canada, Turkey, Italy and the Netherlands, subject to obtaining the necessary regulatory approvals.

The company’s credit profile is supported by ratings from two Nigerian rating agencies. DataPro assigned the airline an A1/BBB rating with a Positive Outlook, while Agusto & Co. rated it A3/BBB- with a Stable Outlook.

The commercial paper issuance is expected to provide funding for the airline’s immediate working capital needs as it pursues its expansion strategy.

Commercial paper is a short-term debt instrument companies use to raise funds, typically to finance operational expenses and other short-term obligations.

Further details on the offer, including the subscription period, applicable yields, maturity dates and minimum investment amount, were not provided in the announcement.