Ghana is exploring the possibility of sourcing petroleum products from Nigeria’s Dangote Petroleum Refinery, a move expected to reduce Ghana’s reliance on costly imports from Europe. Mustapha Abdul-Hamid, Chairman of Ghana’s National Petroleum Authority, mentioned this prospect at the OTL Africa Downstream oil conference in Lagos, estimating that such a shift could save Ghana about $400 million monthly in fuel imports from Europe.
The $20 billion Dangote Refinery, located in Lekki, began distributing Premium Motor Spirit (PMS) domestically in September 2024 and could reach a capacity of 650,000 barrels per day. Abdul-Hamid noted that this production volume would exceed Nigeria’s demand, making regional exports viable. By importing from Nigeria instead of Europe, Ghana could cut freight costs and benefit from reduced prices, with further long-term savings expected if African nations agree on a common currency.
The refinery’s gradual ramp-up in production includes automotive gas oil, aviation fuel, and PMS, with full operational capacity anticipated by early 2025. Farouk Ahmed, Chief Executive of Nigeria’s Midstream and Downstream Petroleum Regulatory Authority, added that the refinery’s contributions will significantly boost supply, addressing both local and regional fuel demands.
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