As part of its efforts to boost its energy security and sustain business cooperation with friendly neighbours, the National Petroleum Authority of Ghana, NPAG, is planning to import refined petroleum products from Dangote Refinery.
This was revealed on Tuesday by NPAG’s Chief Executive Officer, Dr. Mustapha Abdul-Hamid, during the celebration of the 2024 OTL Africa Downstream Energy Week in Lagos. The 2024 OTL 18th edition has the theme: Alliances for Growth.
Abdul-Hamid, who was speaking as one of the panelists, said that the move was aimed at strengthening Ghana’s energy security and deepening regional economic cooperation.
According to him, Ghana was seeking an agreement with Dangote Refinery as a way of reducing its reliance on the more costly imports from Rotterdam.
Ghana, he added, had also expanded its export agreements to include Burkina Faso, Mali and Niger, supplying international operational facilities, including U.S. military bases.
“The Dangote Refinery, with its large-scale output, is expected to meet Nigeria’s domestic demand, enabling excess production to be exported to Ghana,” Abdul-Hamid said.
While calling for stronger regional partnerships, Abdul-Hamid also spoke on his country’s pipeline agreement with Burkina Faso as a model of effective regional cooperation aimed at boosting petroleum supply and security.
The NPAG’s Chief Executive Officer stressed the importance of a unified currency, enhanced infrastructure and collaborative efforts to address West Africa’s energy challenges.
He called for resource-sharing to drive economic stability, noting that no African nation could achieve sustainable growth in isolation.
“Pooling human and infrastructure resources across the region can significantly strengthen our economies,” he said, advocating that West African countries should align their regulatory policies within the ECOWAS framework to foster seamless trade.
Abdul-Hamid acknowledged that while the African Continental Free Trade Area (AfCFTA) provided a platform for collaboration, foreign exchange (FX) issues hindered intra-regional trade.
“Heavy reliance on the U.S. dollar for petroleum imports places constant pressure on local currencies, raising prices and reducing purchasing power,” he explained.
He then proposed a common West African currency to reduce FX volatility and stabilise regional economies.
On regional economic stability through shared infrastructure, Abdul-Hamid emphasised the need for unified investments in infrastructure to lower transportation costs and improve distribution within the region.
Transporting petroleum by road is both costly and risky, with hazards such as banditry.
“A shared pipeline infrastructure is safer and more cost-effective,” he said.
