Ghana may soon start sourcing petroleum products from Nigeria’s Dangote Oil Refinery, potentially reducing its reliance on expensive European imports.
The shift could happen once the refinery operates at full capacity, according to Mustapha Abdul-Hamid, head of Ghana’s National Petroleum Authority.
Abdul-Hamid announced this development on Monday at the OTL Africa Downstream oil conference in Lagos.
He stated that Ghana currently spends approximately $400 million monthly on European fuel imports. By sourcing from Nigeria, Ghana hopes to cut these costs significantly.
“If the refinery reaches its 650,000 barrels-per-day capacity, Nigeria alone won’t consume all that volume,” Abdul-Hamid explained.
“Instead of importing from Rotterdam, we could import from Nigeria, reducing our prices.”
Owned by Nigerian billionaire Aliko Dangote, the refinery is anticipated to be near full operational capacity by year’s end.
Analysts project it could be fully functional by the first quarter of 2025, enhancing regional fuel accessibility.
In addition to lowering fuel costs, Abdul-Hamid suggested that importing from Nigeria would reduce prices across sectors by cutting freight costs.
He also expressed hope for a future common African currency, which could decrease demand for U.S. dollars in cross-border trade.
Ghana’s economy, which grew by 6.9% in the second quarter of 2024, is largely driven by its expanding extractive sector.
The sector’s growth has significantly increased the nation’s fuel demand, adding urgency to Ghana’s need for affordable fuel sources.
