Ghana may source petroleum products from Nigeria’s Dangote Oil Refinery once it reaches full capacity, the head of Ghana’s oil regulator said on Monday.
According to a Reuters report, this move could eliminate the country’s $400 million monthly fuel imports from Europe. Mustapha Abdul-Hamid, chairman of the National Petroleum Authority, made the announcement during the OTL Africa Downstream oil conference in Lagos.
“If the refinery achieves its 650,000 barrels per day capacity, Nigeria alone cannot absorb all that volume. Instead of continuing to import from Rotterdam, it would be easier and more cost-effective for us to import from Nigeria, which I believe will help reduce our fuel prices,” Hamid said.
He added that shifting imports to Nigeria would also lower the cost of other goods and services by eliminating high freight costs. Hamid expressed optimism that African countries might eventually adopt a common currency, reducing reliance on the U.S. dollar.
Ghana’s economy, which grew by 6.9% year-on-year in the second quarter of 2024, has benefited from robust growth in the extractive sector, driving greater demand for fuel.
The Dangote Oil Refinery, developed by Nigerian billionaire Aliko Dangote, is expected to operate near full capacity by the end of 2024, with analysts projecting full operations by the first quarter of 2025.
