Airline Taps Debt Market: United Nigeria Plans ₦20B Commercial Paper, a First for a Domestic CarrierAirline Taps Debt Market: United Nigeria Plans ₦20B Commercial Paper, a First for a Domestic Carrier
Key Highlights
- United Nigeria Airlines plans to raise ₦20B, about KSh 1.95B ($15.04M), through its first commercial paper, which would make it the first Nigerian domestic airline in that market.
- The airline's revenue climbed from ₦10.3B in 2021 to ₦90.8B in 2025, and first-half 2026 revenue of ₦95.6B has already passed last year's full-year total.
- Yields and the opening date have not been disclosed, in a market where the average discount rate on Nigerian commercial paper reached 22.38% in 2025.
United Nigeria Airlines plans to raise ₦20B, about KSh 1.95B ($15.04M), through its first commercial paper, making it the first Nigerian domestic airline to borrow in the short-term debt market.
The deal is a test of whether investors will lend to a fast-growing private carrier in a sector where African airlines, including Kenya Airways, more often lean on state support than on market funding.
The details come from the airline's September 2026 investor presentation The paper will be issued in two series of 270 and 364 days under a ₦100B, about KSh 9.77B ($75.19M), programme, with Meristem Capital as arranger.
A fast-growing airline
The airline's revenue rose from ₦10.3B, about KSh 1.01B ($7.74M), in 2021 to ₦90.8B, about KSh 8.87B ($68.27M), in 2025. Profit after tax grew from ₦1.3B, about KSh 127.01M ($977,440), to ₦23.8B, about KSh 2.33B ($17.89M), over the same period.
Growth has continued this year. First-half 2026 revenue reached ₦95.6B, about KSh 9.34B ($71.88M), already above full-year 2025. August turnover was ₦19.4B, up from ₦14.1B in July, and the airline returned to a net profit of ₦1.2B for the month.
What investors are being offered
Yields, the opening date and the specific use of the money beyond general expansion have not been disclosed. Agusto & Co. rates the airline A3 short-term and BBB minus long-term with a stable outlook, while DataPro rates it A1 short-term and BBB long-term.
The airline flies 10 aircraft to 14 destinations in Nigeria and Ghana, plans six more aircraft by the end of 2026 and has approval to operate as a flag carrier to six international destinations.
A busy and costly market
Nigerian companies raised ₦1.61T, about KSh 157.3B ($1.21B), through commercial paper in 2025, up 40% from ₦1.15T in 2024, according to FMDQ data. The average discount rate rose to 22.38% from 21.69%, so short-term money remains expensive.
For investors across Africa, the pricing of this paper will show how lenders value airline risk when the borrower is profitable and growing fast but still exposed to fuel costs and a weak naira.
In Summary
- Who is raising the money?
- United Nigeria Airlines, with Meristem Capital as arranger.
- What is it raising?
- ₦20B, about KSh 1.95B ($15.04M), in two series of 270 and 364 days under a ₦100B programme.
- Why does it matter?
- It would be the first commercial paper by a Nigerian domestic airline, testing whether investors will lend short-term to a fast-growing carrier.
- How has the airline performed?
- Revenue rose to ₦90.8B in 2025 from ₦10.3B in 2021, and profit after tax to ₦23.8B from ₦1.3B.
- When will the paper open?
- The opening date and yields have not been disclosed. The details come from a September 2026 investor presentation.