Ghana plans to source petroleum products from Nigeria’s Dangote Oil Refinery once it operates at full capacity, potentially decreasing reliance on more expensive imports from Europe.
Mustapha Abdul-Hamid, head of the National Petroleum Authority, states this at the OTL Africa Downstream Oil Conference in Lagos. He emphasizes that such a move could significantly reduce the $400 million Ghana spends monthly on fuel imports from Europe.
Abdul-Hamid explains that importing from Nigeria lowers goods and services prices by minimizing freight costs. He notes, “If the refinery reaches a capacity of 650,000 barrels per day, that volume cannot solely meet Nigeria’s needs, making it easier for us to import from Nigeria instead of Rotterdam.”
He also mentions the possibility of African countries adopting a common currency, which could decrease the demand for U.S. dollars.
Reports indicate that the Dangote Oil Refinery intends to supply petroleum products to various West African nations and the Caribbean once fully operational. Aliko Dangote, CEO of the refinery, asserts that it produces petrol, diesel, and aviation fuel for both domestic use and export across Africa.
At the Africa CEO Forum in Kigali, Rwanda, Dangote highlights the refinery’s capacity to meet local demand while supplying products to other African countries. He states that it ensures a stable supply of gasoline, diesel, and aviation fuel for the continent and export markets, including Brazil.
The Dangote refinery, completed with a $20 billion investment, stands as the largest in both Africa and Europe, processing 650,000 barrels per day. This development aims to reduce Nigeria’s dependence on imported petroleum products, despite the country being the continent’s leading oil producer, as Nigeria currently relies heavily on fuel imports due to inadequate refining infrastructure.
