Ghana may soon source petroleum products from Nigeria’s Dangote Oil Refinery, potentially reducing its reliance on costly imports from Europe, according to the head of Ghana’s National Petroleum Authority (NPA), Mustapha Abdul-Hamid.
Speaking at the OTL Africa Downstream Oil Conference in Lagos, Abdul-Hamid explained that Ghana currently spends around $400 million each month on fuel imports from Europe. However, the operationalisation of Nigeria’s Dangote Oil Refinery could significantly alter this dynamic. “Once the refinery reaches its full capacity of 650,000 barrels per day, Nigeria alone will not require all that output,” Abdul-Hamid noted. “Instead of importing from Rotterdam as we currently do, sourcing fuel from Nigeria would be more efficient, and I believe it would lower our prices.”
The refinery, a major project spearheaded by Nigerian billionaire Aliko Dangote, is expected to approach full operational capacity by the end of this year. Industry analysts anticipate it could be fully online by the first quarter of 2025. This proximity offers logistical advantages for Ghana, potentially reducing overall fuel costs by cutting out the high freight charges associated with European imports.
Abdul-Hamid also highlighted the broader economic benefits, noting that reduced fuel import costs could lead to lower prices across various goods and services in Ghana. In the long term, he expressed optimism that African nations might eventually adopt a common currency to reduce dependence on the U.S. dollar for cross-border trade.
Ghana’s economy, which saw a robust 6.9% year-on-year growth in the second quarter of 2024, has been driven by a strong expansion in the extractive sector, which has subsequently fuelled rising demand for petroleum products.
