First Bank pledges continues support for the oil sector

LAGOS, Nigeria – First Bank of Nigeria has said it will continue to assist oil and gas firms with the right financial support needed to efficiently grow the oil sector.

Speaking at the Energy Finance Forum at the recent Nigeria International Petroleum Summit in Abuja, the Chief Executive Officer, First Bank, Adesola Adeduntan, stated that the bank had been in the forefront supporting oil and gas firms, especially indigenous operators.

Adeduntan, who was represented by the bank’s Executive Director, Public Sector, Abdullahi Ibrahim, noted that infrastructure financing was critical in accelerating development, adding that this underscored the need for an appropriate regulatory environment in attracting long-term investment to the sector.

He said the bank had been supporting the sector with funds through some of its products that provided finance for oil contracts.

According to Adeduntan, First Bank’s oil industry contract finance product is designed to meet the funding requirements of indigenous oil and gas companies who are either customers or prospects of the bank.

He explained that the self-liquidating product was contingent upon receipt of contract proceeds after successful completion of stipulated milestone.

“This has been beneficial to operators in the sector and it has increased their profitability and impacted greatly on their operations over the years,” Adeduntan said.

The bank also stated that it had been providing finance for stock of white petroleum products in the downstream oil sector.

According to the bank, it provides support to existing or new customers who are registered members of oil associations in the country.

Adeduntan said such support provided an opportunity to increase volume of business as well as margins through consistent growth in turnover through credit financing.