Ghana may shift to purchasing petroleum products from Nigeria’s Dangote Oil Refinery once it reaches full operational capacity, potentially cutting its $400 million monthly fuel imports from Europe.
This move could signal a significant cost reduction for Ghana and reinforce regional trade in Africa.
This prospect was disclosed by Mustapha Abdul-Hamid, Chairman of Ghana’s National Petroleum Authority, during the OTL Africa Downstream Oil Conference in Lagos.
He pointed out that sourcing fuel from Nigeria would likely decrease Ghana’s expenses by reducing freight costs.
Abdul-Hamid also noted that a future shared African currency might further diminish reliance on the U.S. dollar for such transactions, easing currency exchange pressures across African markets.
“If the refinery reaches 650,000 bpd a day capacity, all that volume cannot be consumed by Nigeria alone, so instead of us importing as we do right now from Rotterdam, it will be much easier for us to import from Nigeria and I believe that will bring down our prices,” Abdul-Hamid explained.
Ghana’s current rapid economic growth has led to increased demand for fuel, heightening the need for more affordable and logistically feasible import options.
The Dangote Oil Refinery, expected to approach full capacity by the end of this year, aims to be fully operational by early 2025.
Recall that Dangote Refinery began supplying Premium Motor Spirit, commonly known as petrol, to the Nigerian market on September 15, 2024.
