United Nigeria Airlines Raises ₦22bn In Landmark Commercial Paper Debut

United Nigeria Airlines (UNA) has raised ₦22 billion through the first tranche of its ₦100 billion Commercial Paper (CP) programme, marking the first commercial paper issuance by an airline in Nigeria’s financial history.

The airline initially targeted ₦20 billion through Series 1 and Series 2 of the issuance but attracted excess subscriptions of more than ₦5 billion, reflecting strong interest from institutional investors.

According to a report by Aviation Metric published on Sunday, the airline opted for a 10 per cent increase in the targeted amount, bringing the total funds raised to ₦22 billion, while returning the remaining unallocated subscriptions to investors.

The issuance attracted participation from asset managers, insurance companies and high-net-worth individuals, signalling growing investor interest in the airline’s expansion plans.

Managing Director of United Nigeria Airlines, Osita Okonkwo, said the strong demand demonstrated confidence in the company’s business model, financial performance and growth strategy.

He explained that the proceeds would be deployed towards fleet expansion and improving operational efficiency as the airline works to strengthen its position in Nigeria’s aviation market.

Okonkwo expressed appreciation to the investors who participated in the transaction, adding that the airline looked forward to further engagement with the capital market as it executes subsequent tranches of its financing programme.

Also commenting on the transaction, Managing Director of Meristem Capital Limited, Rasaki Salawu, described the issuance as a landmark development for Nigeria’s aviation and financial sectors.

Salawu, whose firm served as the lead issuing house, commended the airline for limiting the increase to 10 per cent despite receiving excess subscriptions exceeding ₦5 billion.

He said the decision reflected financial discipline and sound corporate governance, expressing confidence that the transaction would support the airline’s expansion objectives.

The capital raise comes as United Nigeria Airlines pursues plans to expand its fleet and strengthen its domestic and regional operations.

The carrier currently serves 14 domestic and regional destinations across Nigeria and Ghana, with plans to deepen its regional network.

The airline also holds designated flag-carrier approvals for six international routes, providing opportunities for further expansion into international markets.

The successful issuance represents a significant milestone for the airline, which is seeking to leverage Nigeria’s capital market to finance growth in an aviation sector historically challenged by foreign exchange pressures, high operating costs and substantial financing requirements.