First Bank Nigeria Limited has stepped in as a major backer of the new Pinnacle Oil and Gas terminal to help address some of the gaps because Nigerian and other African ports, generally, lack essential infrastructure, do not perform effectively, and do not always meet global standards.
On Saturday, President Muhammadu Buhari formally opened the Pinnacle Oil and Gas Free Zone Area (FZE) Terminal in Lekki, Lagos. He claimed that the facility’s operations had reduced costs, improved the distribution of petroleum products to many areas of the nation, and also eased traffic in the Apapa region of the state.
Speaking about the project, Mr. Gbenga Shobo, Deputy Managing Director of First Bank Limited, said it will enable the berthing of huge delivery vessels that are more effective for carrying goods but were previously unable to be built in Nigeria.
Additionally, discharge times will be shortened, he continued, which will lead to reduced landed costs for petroleum products.
The elimination of delivery losses, which typically occur during the ship-to-ship transfers required for the current delivery model, as well as the facilitation of effective storage of large volumes—which, one can say modestly, would be considered the largest storage facility in Africa—are additional advantages mentioned by Shobo.
He claims that the lender is really happy to be a part of the Pinnacle Terminal project’s success.
Saying, It is a triumph with beneficial economic effects. The Pinnacle Terminal project, which would create Africa’s biggest storage facility, would revolutionize sub-regional goods processing and storage,” he claimed.
He also mentioned that the Pinnacle Terminal project, which requires significant amounts of capital, can be financed by First Bank.
“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 included 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 financing of the customer’s Depot in Warri marked the beginning of the partnership with Pinnacle Oil and Gas more than ten years ago. The business has established over the years that they can manage enormous buildings, and they also have a solid reputation.
As one of the main entry points to the world market, maritime transit is crucial for facilitating trade, according to Shobo.
Good terminals, which are crucial components of ports, are important for increasing port efficiency and, consequently, for lowering trade costs, including transport expenses, tying supply chains together, and promoting international trade. As a result, this improves a country’s ability to compete internationally.
