United Nigeria Airlines Closes First Tranche of N100 Billion Commercial Paper Programme at N22 Billion

United Nigeria Airlines has closed the first tranche of its N100 billion commercial paper programme, raising N22 billion after demand exceeded its N20 billion target. Businessday reported the issuance was oversubscribed, with the airline absorbing 10% of the excess subscription and returning the remainder to subscribers whose applications could not be fully allocated.

United Nigeria Airlines' Two-Series Issuance

The issuance was structured in two series, with tenors of 270 days and 364 days. Agusto & Co. assigned ratings of A3 for the short term and BBB- for the long term, with a stable outlook, while DataPro assigned ratings of A1 for the short term and BBB for the long term.

Mazi Osita Okonkwo, Managing Director of United Nigeria Airlines, said: "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. The proceeds will support fleet expansion and operations."

Rasaki Salawu, Managing Director of Meristem Capital Limited, said the firm served as Lead Issuing House for the registration of the N100 billion programme and the debut issuance of N20 billion under Series 1 and 2. "This is the first commercial paper issuance by an airline in Nigeria," Salawu said, adding that demand came from asset managers, insurance companies and high-net-worth individuals, with excess demand of more than N5 billion. He said the issuer chose to upsize by no more than 10 percent to N22 billion, and that Meristem partnered with Cordros Capital and other dealers on the transaction.

United Nigeria Airlines currently serves 14 destinations across Nigeria and Ghana and is finalising plans to increase its regional footprint. It also has approvals to operate as a flag carrier to six international destinations. The airline is an IOSA-certified operator, has been an IATA member since 2022 and is a full member of the African Airlines Association. In 2026, it signed the IATA Multilateral Interline Traffic Agreement and secured GDS agreements with Amadeus and Sabre.

United Nigeria Airlines' Route and Partnership Record

According to akta.pro company records, United Nigeria Airlines announced in June 2026 near-term route expansion to Monrovia, Banjul, Dakar, Abidjan, Conakry, Douala and Libreville, with long-haul plans for Johannesburg. The same records show the airline went live on the Amadeus Global Distribution System in June 2026, granting real-time inventory access to global travel agents, corporate clients and travel management companies. In June 2026 it also signed an MoU with the Government of Guinea-Bissau to establish Air Bissau as the country's national airline after nearly 28 years without a national carrier, with United Nigeria Airlines providing majority financial investment, operational expertise, aircraft and management.

United Nigeria Airlines' Path to the Issuance

On October 16, 2026, Premium Times Nigeria reported that United Nigeria Airlines planned to raise N20 billion via commercial paper, the first such issuance by a domestic Nigerian airline, with the first tranche of a N100 billion programme carrying tenors of 270 and 364 days and Meristem Capital as lead arranger. In September 2026, Nairametrics reported that the Nigeria Civil Aviation Authority warned the airline against operating beyond its available capacity, citing capacity strain and stranded passengers. In August 2026, Premium Times Nigeria reported that Air Peace and United Nigeria Airlines suffered operational disruptions and financial losses after a strike by aviation unions led to the cancellation of dozens of flights.