Ghana could significantly reduce its fuel import costs by sourcing petroleum products from Nigeria’s Dangote Oil Refinery, according to the head of the country’s National Petroleum Authority.
Mustapha Abdul-Hamid, chairman of the authority, stated that importing fuel from Nigeria, rather than Europe, could save Ghana approximately $400 million per month.
This shift would reduce reliance on more expensive European exports and potentially lower overall prices for goods and services.
The Dangote Oil Refinery, a massive project spearheaded by Nigerian billionaire Aliko Dangote, is expected to reach near-full capacity by the end of the year.
Analysts predict full operational capacity by the first quarter of 2025.
Hamid expressed optimism about the potential benefits of this strategic shift, highlighting the reduced freight costs associated with importing from a neighboring country.
He also suggested that a common African currency could further stabilize fuel prices by reducing demand for US dollars.
Ghana’s economy has been experiencing robust growth, particularly in the extractive sector, which has fueled a surge in fuel demand.
The country’s government is actively exploring ways to optimize its energy supply and reduce costs to sustain this economic momentum.