Ghana is considering importing petroleum products from Nigeria’s Dangote Petroleum Refinery once it reaches full capacity, potentially replacing expensive European exports.
This move could save Ghana $400 million monthly, according to Mustapha Abdul-Hamid, Chairman of Ghana’s National Petroleum Authority.
Speaking at the OTL Africa Downstream oil conference in Lagos, Abdul-Hamid emphasized the benefits of importing from Nigeria. “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.”
The Dangote refinery, built by Nigerian billionaire Aliko Dangote, commenced operations on September 15, 2024, releasing Premium Motor Spirit into the Nigerian market. Despite this, Nigerian marketers have continued importing PMS due to the total deregulation of the downstream oil sector.
*Key Benefits of Importing from Nigeria*
– _Reduced Freight Costs_: Importing from Nigeria would eliminate expensive freight costs associated with European imports.
– _Lower Prices_: Abdul-Hamid believes importing from Nigeria will lead to lower prices for petroleum products.
– _Economic Growth_: Ghana’s economy, which grew 6.9% year-on-year in Q2 2024, could benefit from reduced fuel costs.
Analysts predict the Dangote refinery will operate at near full capacity by year-end and reach full capacity in Q1 2025. Abdul-Hamid also envisioned a future where African countries adopt a common currency, reducing demand for dollars.
