Ghana may consider purchasing petroleum products from Nigeria’s Dangote Oil Refinery once the facility reaches its full operational capacity, as stated by the head of the country’s oil regulatory body on Monday.
As reported by Reuters, this development could potentially eliminate the need for monthly fuel imports from Europe, which currently amount to $400 million, according to Mustapha Abdul-Hamid, chairman of the National Petroleum Authority of Ghana, during his remarks at the OTL Africa Downstream oil conference in Lagos.
“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,” Hamid said.
He suggested that sourcing imports from Nigeria instead of Europe could lead to a reduction in the prices of various goods and services by eliminating freight expenses.
He also mentioned that African nations might eventually reach an agreement on a unified currency, which could lessen the reliance on the dollar.
Ghana’s economy, which experienced a year-on-year growth of 6.9% in the second quarter of 2024, has been significantly influenced by a robust expansion in the extractive sector, resulting in increased fuel demand.
The Dangote Oil refinery, established by Nigerian billionaire Aliko Dangote, is anticipated to operate at nearly full capacity by the year’s end, with analysts projecting it could be fully functional by the first quarter of 2025.
