Ghana is considering sourcing petroleum products from Nigeria’s Dangote Petroleum Refinery to lower the high costs of importing fuel from Europe, Mustapha Abdul-Hamid, Chairman of Ghana’s National Petroleum Authority, announced on Monday. Speaking at the OTL Africa Downstream oil conference in Lagos, Abdul-Hamid noted that switching to Nigeria’s refinery could end Ghana’s reliance on monthly European fuel imports costing around $400 million.
Located in Lekki, the $20 billion Dangote refinery began distributing Premium Motor Spirit (PMS) into the Nigerian market in mid-September 2024. While Nigeria has increased PMS imports to meet demand following downstream deregulation, Abdul-Hamid explained that Ghana may turn to the Dangote refinery if it achieves its full capacity of 650,000 barrels per day (bpd).
“If the refinery reaches 650,000 bpd, Nigeria won’t consume all that supply, so importing from Nigeria instead of Rotterdam could significantly reduce our costs,” Abdul-Hamid stated, adding that lowered freight expenses could drive down the prices of other goods and services.
The Dangote refinery, a project by Nigerian industrialist Aliko Dangote, is projected to operate near full capacity by year’s end, with full operational status expected in early 2025. Abdul-Hamid also voiced support for an African common currency, which he said could further ease trade and reduce demand for the dollar across the continent.
