Ghana is exploring the option of importing petroleum products from Nigeria’s Dangote Oil Refinery as the facility approaches full operational capacity. This potential partnership aims to reduce the country’s costly reliance on European fuel imports, with estimates suggesting savings of around $400 million per month in import costs.
Mustapha Abdul-Hamid, Chairman of the National Petroleum Authority of Ghana, announced the initiative at the OTL Africa Downstream Oil Conference in Lagos. He explained that once the Dangote Refinery reaches its production capacity of 650,000 barrels per day, importing fuel from Nigeria could lead to lower shipping costs and more affordable prices for Ghanaian consumers. “Instead of sourcing from Europe, the geographical closeness to Nigeria could lead to more competitive pricing,” he stated.
Owned by Africa’s wealthiest individual, Aliko Dangote, the Dangote Refinery is set to produce a variety of refined products, including petrol, diesel, and jet fuel, to meet both domestic demand in Nigeria and export needs across West Africa, the Caribbean, and even Brazil.
With a significant investment of $20 billion, the refinery is expected to play a crucial role in reducing Nigeria’s dependence on fuel imports, becoming the largest refinery in Africa and Europe upon reaching full capacity.
Earlier this year, Dangote emphasized the refinery’s capability to meet fuel demands across the continent, asserting, “Our production capability is extensive, allowing us to supply West, Central, and Southern Africa.”
This potential collaboration aligns with discussions among African nations about establishing a common currency, which could further diminish the region’s reliance on the dollar for international trade.
