Ghana is evaluating the potential to procure petroleum products from Nigeria's Dangote Oil Refinery upon its attainment of full operational capacity. This strategic move aims to mitigate reliance on higher-priced imports from Europe, as confirmed by the director of the nation's petroleum regulatory agency.
This shift could potentially eliminate monthly fuel imports from Europe, currently valued at $400 million, as stated by Mustapha Abdul-Hamid, chairman of the National Petroleum Authority of Ghana, during the OTL Africa Downstream oil conference in Lagos.
Hamid noted that if the refinery reaches a capacity of 650,000 barrels per day, Nigeria alone would not be able to consume all of that output. Therefore, it would be more efficient for Ghana to import from Nigeria instead of its current practice of importing from Rotterdam, which he believes would lead to lower prices.
The Dangote Oil Refinery, established by Nigerian billionaire Aliko Dangote, is anticipated to operate at near full capacity by the end of this year, with analysts projecting full operations by the first quarter of 2025.
Hamid emphasized that sourcing fuel from Nigeria instead of Europe would not only lower fuel prices but also reduce costs for other goods and services by eliminating freight expenses. He also mentioned that African nations may eventually agree on a common currency, which could lessen the demand for U.S. dollars.
The Ghanaian economy grew by an impressive 6.9% year-on-year in Q2 2024, largely driven by the expansion of the extractive sector, which has resulted in increased demand for fuel.