Ghana is considering purchasing petroleum products from Nigeria’s Dangote Oil Refinery once it reaches full operational capacity, potentially reducing its dependency on more costly European imports. Mustapha Abdul-Hamid, Chairman of Ghana’s National Petroleum Authority, expressed this intention at the OTL Africa Downstream Oil Conference in Lagos on Monday, citing substantial economic benefits.
“If the refinery reaches 650,000 barrels per day (bpd) capacity, all that volume cannot be consumed by Nigeria alone,” Hamid noted. “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.”
Currently, Ghana spends approximately $400 million each month on fuel imports from Europe. Importing from the Dangote refinery, which analysts expect to be fully operational by the first quarter of 2025, could dramatically lower Ghana’s fuel costs by eliminating high freight expenses associated with European imports. Abdul-Hamid believes that sourcing petroleum from Nigeria would not only reduce fuel prices but would also have a ripple effect on the cost of goods and services across Ghana.
As the refinery’s operation ramps up, Abdul-Hamid also anticipates that African countries will eventually adopt a common currency, helping ease reliance on the dollar. Fuel demand in Ghana continues to grow, driven in large part by a strong expansion in the extractive sector, which contributed significantly to Ghana’s 6.9% year-on-year GDP growth in the second quarter of 2024.
