Ghana may begin sourcing petroleum products from Nigeria’s Dangote Oil Refinery once the facility reaches full capacity, according to Mustapha Abdul-Hamid, chairman of Ghana’s National Petroleum Authority.
This shift is expected to reduce Ghana’s reliance on costly European imports, according to Reuters.
At the OTL Africa Downstream Oil Conference in Lagos, Abdul-Hamid said this shift could save Ghana approximately $400 million in monthly fuel imports from Europe.
What Abdul-Hamid said:
“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,” Hamid said.
The refinery, a project by Nigerian billionaire Aliko Dangote, is anticipated to approach full operational capacity by the end of the year, with analysts projecting complete functionality by early 2025.
Hamid noted that sourcing petroleum from Nigeria instead of Europe could reduce costs across various sectors by eliminating high freight expenses.
Dangote Refinery reshaping Africa’s energy market
Dangote’s refinery, already seen as a transformative force in Africa’s energy sector, is beginning to show its impact.
In May, gasoil exports from the facility nearly doubled to reach close to 100,000 barrels per day (bpd), according to data from analytics firm Kpler. Most of these exports were directed to other West African countries, underscoring the refinery’s potential to reshape regional fuel supply chains.
According to economists, the Dangote refinery might halt the decades-long gasoline trade from Europe to Africa worth $17 billion each year.
Abdul-Hamid added that, in the long term, African nations may adopt a common currency, which could lessen reliance on the dollar.
Ghana’s economy, which grew by 6.9% year-on-year in Q2 2024, has seen this growth largely fueled by a robust expansion in the extractive sector, significantly driving fuel demand.
