By: Solakuti

Ghana is considering importing petroleum products from Nigeria’s newly operational Dangote Petroleum Refinery as part of its strategy to reduce the high cost of fuel imports from Europe, according to Mustapha Abdul-Hamid, Chairman of Ghana’s National Petroleum Authority.

During the OTL Africa Downstream Oil Conference in Lagos on Monday, Abdul-Hamid explained that Ghana currently spends approximately $400 million monthly on fuel imports from Europe. Importing from the Dangote Refinery, once it reaches its full capacity, could cut these costs significantly. He noted that if the refinery attains its targeted output of 650,000 barrels per day, “all that volume cannot be consumed by Nigeria alone, so instead of us importing from Rotterdam, it will be much easier for us to import from Nigeria and I believe that will bring down our prices.”

The $20 billion Dangote Refinery, located in Lekki, Nigeria, began supplying Premium Motor Spirit (PMS), or petrol, to the Nigerian market in September 2024. Despite this local production, Nigerian fuel marketers continue to import substantial volumes of PMS due to the country’s fully deregulated downstream oil sector.

Abdul-Hamid suggested that sourcing fuel from Nigeria rather than Europe could reduce freight costs, which in turn would lower fuel prices and potentially decrease prices of other goods and services in Ghana. He also mentioned that a common African currency could eventually stabilize regional economies by reducing reliance on the U.S. dollar.

As Ghana’s economy continues its rapid growth—expanding by 6.9% year-on-year in the second quarter of 2024, largely driven by the extractive sector—its demand for fuel has surged, making affordable fuel imports an economic priority. The Dangote Refinery is expected to be fully operational by early 2025, a milestone that could catalyze economic cooperation across West Africa and provide a more cost-effective fuel solution for Ghana and other neighboring nations.