First Bank has restated its commitment in driving infrastructure development across critical sectors of the economy.
The commitment was made during the commissioning of Pinnacle Terminal project which is expected to enhance Nigeria’s trade competitiveness.
Deputy Managing Director, First Bank of Nigeria Limited, Gbenga Shobo, commenting at the commissioning of the Pinnacle Oil and Gas Terminal facility in Lekki FTZ, Lagos at the weekend, stated that given the inadequate port infrastructures in the country, the new terminal will facilitate the berthing of large delivery vessels which are more efficient for shipping products.
“It will also reduce discharge time, which will result in lower landed prices for petroleum products. Other benefits include the eradication of delivery losses which would typically occur during the ship-to-ship transfers which is necessary in 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,”he said.
According to him, maritime transport is an essential component in facilitating trade. “Good terminals which are essential aspects of ports contribute to the resourcefulness of ports and is key to reducing trade costs, including transport costs, connecting supply chains and supporting global trade,” he said. Consequently, this enhances trade competitiveness of countries”, he said.
Shobo said First Bank being one of the major financier of the Pinnacle Terminal project, is delighted to be part of the success story and added that the terminal will transform sub-regional products storage and handling.
First bank interestingly and directly funded the project with its debt capital.
Shobo said, Indeed, we are 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.
The DMD, believing in the strength of the bank, confidently added that First Bank has the capacity to finance highly capital-intensive projects such as the Pinnacle Terminal project, adding, “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.”
According to him, FirstBank is deliberate about putting in place standard processes and policies which are key enablers of performance and in line with the bank’s nation-building strategic goal, it has expanded intentional footprint with regards to client relationship and partnership.
Oriental News Nigeri reports that the bank’s relationship with Pinnacle Oil and Gas started over 10 years ago with the financing of the customers Depot at Warri. The company has proven over the years that they have the capacity to handle large facilities and great reputation to boot.
On the impact of the project, Shobo, state’s that given that Africa ports in most cases lack essential infrastructure and do not perform optimally as well as do not always match global trends and standards, the new terminal will help close some of the gaps.
It will facilitate the berthing of large delivery vessels which are more efficient for shipping products, but hitherto could not berth in Nigeria and will also reduce discharge time, which will result in lower landed prices for petroleum products.
He listed other benefits to include the eradication of delivery losses which would typically occur during the ship-to-ship transfers which are necessary in 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.
As one of the major gateways to the global marke-t place, maritime transport is an essential component in facilitating trade and 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 trade competitiveness of countries, he said
