Ghana to import oil from Dangote Refinery – Official – Energy – The Guardian Nigeria News – Nigeria and World News

The Ghana National Petroleum Authority has announced that it is proposing to import refined petroleum products from the Dangote Refinery to enhance energy security and maintain commercial cooperation with its neighbours.

NPAG Chief Executive Officer, Dr Mustapha Abdul-Hamid, said this at the 2024 OTL Africa Downstream Energy Week in Lagos on Tuesday.

Speaking as one of the panelists, Abdul-Hamid said the move was aimed at strengthening Ghana’s energy security and deepening regional economic cooperation.

The News Agency of Nigeria (NAN) reports that the 18th edition of the 2024 OTL has the theme ‘Alliances for Growth’.

According to Abdul-Hamid, Ghana wants to strike a deal with the Dangote Refinery and reduce its dependence on costlier imports from Rotterdam.

He said Ghana had also expanded export agreements to Burkina Faso, Mali and Niger and provided international operational facilities, including US military bases.

“Dangote Refinery, with its large-scale production, is expected to meet Nigeria’s domestic demand and enable excess production to be exported to Ghana,” he said.

While calling for stronger regional partnerships, Abdul-Hamid highlighted Ghana’s pipeline agreement with Burkina Faso as an effective model of regional cooperation to increase oil supply and security.

He emphasized the importance of a unified currency, improved infrastructure and collaborative efforts to address West Africa’s energy challenges.

The chief executive stated that no African country could achieve sustainable growth alone and called for resource sharing to ensure economic stability.

“Pooling human and infrastructure resources across the region can significantly strengthen our economies,” he said.

He suggested that West African countries align their regulatory policies within the ECOWAS framework to promote seamless trade.

Abdul-Hamid acknowledged that the African Continental Free Trade Area (AfCFTA) provides a platform for cooperation, but foreign exchange (FX) issues hinder intra-regional trade.

“Over-reliance on the US dollar for oil imports puts constant pressure on local currencies, raising prices and reducing purchasing power,” he explained.

He proposed a common West African currency to reduce currency volatility and stabilize regional economies.

On regional economic stability through shared infrastructure, Abdul-Hamid emphasized the need for combined investments in infrastructure to reduce transportation costs and improve distribution within the region.

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“Transporting oil by road is both costly and risky, and brings with it dangers such as banditry.

“A shared pipeline infrastructure is safer and more cost-effective,” he said.

Abdul-Hamid touched on the Ghana-Burkina Faso pipeline agreement, which is designed to reduce dependence on tanker transportation and ensure stable supplies.

He said Ghana has introduced regulatory policies that allow marketers to share storage facilities, encouraging cooperation and economic stability.

“This reform supports alliances between importers, increasing business success and broader economic stability.”

First Bank of Nigeria Ltd. Energy Group Chairman, Ms. Oluwatosin Aina, also echoed Abdul-Hamid’s call for a united African currency.

Aina stated that dollar-based transactions increase operational and product costs across the continent.

He explained that oil transactions with the Dangote Refinery and Ghana’s Sentuo Oil Refinery must be dollar-denominated because “no African refinery will sell Premium Motor Spirit (PMS) in local currencies.”

The end of Nigeria’s fuel subsidy creates new investment opportunities in the downstream and midstream sectors and makes it easier for banks to finance oil imports, the group chairman said.

However, he noted that dollar-denominated transactions continue to weigh on the naira and other regional currencies, and called for strengthening non-oil exports to improve foreign exchange inflows.

Aina proposed a model based on the European Union’s common currency, the euro, to stabilize African markets.

“Francophone African countries enjoy stable exchange rates under common currencies, making them less vulnerable to currency fluctuations.

“Anglophone countries could adopt a similar approach to strengthen trade and financial stability,” he said.

Abdul-Hamid and Aina emphasized the urgent need for a unified infrastructure and currency reforms.

By aligning fiscal policies, oil infrastructure and regulatory frameworks, West African countries can address monetary challenges and ensure affordable, stable oil pricing for citizens, they said.