On Monday 28 of October 2024, the head of the country’s oil regulatory said, Ghana could buy petroleum products from Nigeria’s Dangote Petroleum Refinery once the facility is in full operation.
The Chairman of the National Petroleum Authority, Ghana, Mustapha Abdul-Hamid, said this could end monthly fuel imports from Europe of $400m. He made this known at the OTL Africa Downstream oil conference in Lagos, Reuters reported.
The $20bn Lekki-based Dangote refinery commenced the release of Premium Motor Spirit, popularly called petrol, into the Nigerian market on September 15, 2024.
But despite this, marketers of the product in Nigeria have since commenced the importation of PMS in hundreds of millions of litres following the total deregulation of the downstream oil sector in Nigeria by the Federal Government.
However, at the function in Lagos on Monday, the Ghanaian petroleum authority official stated that his country might start importing fuel from the Nigerian refinery.
“If the refinery reaches 650,000 barrels per day [BPD] 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.
According to him importing from Nigeria rather than Europe would bring down the prices of other goods and services by removing freight costs. Eventually, he said African countries would agree on a common currency that should dampen demand for dollars.
Ghana’s economy, which grew by 6.9 per cent year-on-year in the second quarter of 2024, has been driven largely by a strong expansion of the extractive sector which has boosted demand for fuel.
The Dangote refinery built by Nigerian billionaire Aliko Dangote is expected to operate at near full capacity at the end of the year and analysts believe it could be fully operational in the first quarter of 2025.
