Ghana could soon begin importing petroleum products from Nigeria’s Dangote Oil Refinery once the facility operates at full capacity, according to Mustapha Abdul-Hamid, chairman of the National Petroleum Authority.
This development, discussed at the OTL Africa Downstream oil conference in Lagos, could significantly reduce Ghana’s current monthly fuel imports from Europe, which amount to $400 million.
Abdul-Hamid noted that if the refinery reaches its target capacity of 650,000 barrels per day, Nigeria would not be able to consume all that volume domestically. “Instead of importing from Rotterdam as we do now, it will be much easier for us to import from Nigeria, and I believe that will bring down our prices,” he stated.
He further explained that sourcing fuel from Nigeria rather than Europe would not only lower fuel prices but also decrease the costs of other goods and services by eliminating freight expenses. Abdul-Hamid anticipates that African countries may eventually agree on a common currency, which would help reduce demand for dollars.
Ghana’s economy, which saw a 6.9% year-on-year growth in the second quarter of 2024, has largely benefited from robust expansion in the extractive sector, driving increased demand for fuel.
The Dangote Oil Refinery, founded by Nigerian billionaire Aliko Dangote, is expected to operate at near full capacity by the end of this year, with analysts predicting full operational capability by the first quarter of 2025.
