In a strategic move to strengthen its fuel supply, Ghana is set to begin importing fuel from the Dangote Oil Refinery in Nigeria. This partnership highlights growing economic ties between the nations.
Ghana might purchase petroleum products from Nigeria’s Dangote Oil Refinery once the facility reaches full operational capacity, according to the head of Ghana’s oil regulatory body on Monday.
Mustapha Abdul-Hamid, chairman of the National Petroleum Authority in Ghana, stated at the OTL Africa Downstream oil conference in Lagos that this could potentially eliminate monthly fuel imports from Europe valued at $400 million, as reported by Reuters.
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Hamid stated that if the refinery achieves a capacity of 650,000 barrels per day, Nigeria won’t be able to consume all that volume domestically. Consequently, rather than importing from Rotterdam as is currently done, it will be more convenient to import from Nigeria instead. He believes this shift could lead to reduced prices for them.
He believes that importing from Nigeria instead of Europe could reduce the prices of various goods and services by eliminating freight costs. Over time, he mentioned, African countries might adopt a common currency to decrease demand for dollars. Ghana’s economy experienced notable growth, expanding by 6.9% year-on-year in the second quarter of 2024, primarily due to significant growth in the extractive sector that has increased fuel demand.
The Dangote Oil Refinery, constructed by Nigerian billionaire Aliko Dangote, is anticipated to reach near full capacity by year-end. Analysts predict it could be completely operational in the first quarter of 2025.
