Government Considering Importing Crude Oil From Nigeria

Government is currently weighing the option of importing crude oil directly from the Aliko Dangote-owned Oil Refinery in Nigeria.

The Dangote Refinery is currently nearing completion with a full capacity of 650,000 barrels per day (bpd).

Chief Executive Officer of the National Petroleum Authority (NPA), Dr. Mustapha Hamid says once the refinery attains its full capacity, it will be economically prudent for Ghana to import crude oil directly from the West African neighbour.

Dr. Hamid who was speaking at the OTL Africa Downstream Oil Conference in Lagos maintained that the 650,000 bpd of the refinery is expected to create a surplus in Nigeria which can be channeled to Ghana.

Directly importing from Nigeria, the CEO says will inure to significant economic benefit to Ghana. Importing from a West African country will significantly reduce the pressure on the local currency compared to the current importation from Europe with an import bill of about US$350 million monthly.

This means Ghana requires about $350 million every month to import crude oil from Europe, which is partly contributing to the free fall of the cedi.

The CEO further noted that importing from Nigeria directly has the potential to offer an accessible and affordable source of oil for Ghana.

“If the refinery reaches 650,000 bpd a day capacity, all that volume cannot be consumed by Nigeria alone, so instead of us importing as we do right now from Rotterdam,” the NPA boss said at the conference adding that, “it will be much easier for us to import from Nigeria and I believe that will bring down our prices.”

This possible shift in import strategy could lead to substantial financial benefits.

For years, Ghana has relied on European markets, especially Rotterdam, for its petroleum needs. The costs associated with these long-distance imports, driven by high shipping charges, import duties, and currency fluctuations—have had a significant impact on fuel prices domestically, affecting both consumers and businesses alike.

Source:thehighstreetjournal.com