Ghana may soon source petroleum products from Nigeria’s Dangote Oil Refinery, a move expected to reduce reliance on pricier imports from Europe.

Dr. Mustapha Abdul-Hamid, Chief Executive Officer of Ghana’s National Petroleum Authority (NPA), highlighted this potential shift during the OTL Africa Downstream Oil Conference in Lagos on Monday.

With Ghana currently spending around $400 million monthly on fuel imports from Europe, Dr. Hamid expressed optimism that accessing Nigeria’s production could cut costs.

"If the refinery reaches its targeted 650,000 barrels per day (bpd) capacity, that volume would surpass Nigeria's domestic needs, allowing Ghana to import from Nigeria rather than Rotterdam.

This change could substantially lower our fuel prices," he stated.

The Dangote Oil Refinery, a $19 billion facility built by Nigerian billionaire Aliko Dangote, is expected to achieve near-full operational capacity by the end of 2024, with full capacity anticipated by early 2025.

Dr. Hamid noted that sourcing fuel closer to home would reduce freight costs and potentially drive down prices of other goods and services across Ghana.

He also suggested that an African common currency could reduce the reliance on the U.S. dollar, which would further help control import costs.

Ghana's growing economy, which expanded by 6.9% year-on-year in the second quarter of 2024, has seen heightened fuel demand, largely due to a thriving extractive sector.

As the Dangote Oil Refinery ramps up, Ghana's interest in sourcing from Africa rather than Europe could mark a shift towards more affordable and regionalized energy procurement, he concluded.