First Bank finances Pinnacle Oil, facilitates large vessels delivery

Given that Nigerian and most African ports, in general, lack essential infrastructure and do not perform optimally as well as do not always match global standards, First Bank Nigeria Limited has stepped in as major financier of the new Pinnacle Oil and Gas terminal to help close some of the gaps.

President Muhammadu Buhari on Saturday officially opened the Pinnacle Oil and Gas Free Zone Area (FZE) Terminal in Lekki, Lagos, stating that the facility’s activities had lowered costs and improved the distribution of petroleum products to many areas in the country while also easing traffic in the Apapa area of the state.

Commenting on the project, the Deputy Managing Director, First Bank Limited, Mr. Gbenga Shobo said it will facilitate the berthing of large delivery vessels which are more efficient for shipping products, but hitherto could not berth in Nigeria.

He added that it will also reduce discharge time, which will result in lower landed prices for petroleum products.

Other benefits listed by Shobo include: the eradication of delivery losses which would typically occur during the ship-to-ship transfers which are necessary for the delivery model in use today; the facilitation of efficient storage of large volumes and one can say with all modesty would be considered the largest storage facility in Africa.

According to him, the lender indeed is truly delighted to be part of the success story of the Pinnacle Terminal project.

“It is a success with positive economic impacts. The Pinnacle Terminal project will transform sub-regional products storage and handling and would be the largest storage facility in Africa,” he said.

He also disclosed that First Bank has the capacity to finance highly capital-intensive projects such as the Pinnacle Terminal project.

“We have clearly defined criteria and processes that guide the Bank’s decisions to undertake the financing of projects. This includes relying on our risk management architecture. Our risk management architecture is constantly retooled and strengthened, and this has been demonstrated in the consistent record performance in line with industry standards.

“So, we followed our standard credit risk management processes and reviews which includes ensuring that the request met our credit risk appetite to get the facility approved.

“As stated, FirstBank is deliberate about putting in place standard processes and policies which are key enablers of performance. Based on the foregoing and in line with FirstBank’s nation-building strategic goal, we are equally intentional with regards to client relationship and partnership,” the bank’s DMD emphasized.

The relationship with Pinnacle Oil and Gas started over 10 years ago with the financing of the customer’s Depot at Warri. The company has proven over the years that they have the capacity to handle large facilities and a great reputation to boot.

According to Shobo, as one of the major gateways to the global marketplace, maritime transport is an essential component in facilitating trade.

Good terminals which are essential aspects of ports contribute to the resourcefulness of ports and by implication key to reducing trade costs, including transport costs, connecting supply chains, and supporting global trade. Consequently, this enhances the trade competitiveness of countries.

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