Ghana Turns to Nigeria’s Dangote Refinery to Bridge Fuel Supply Gap

As West Africa pushes to strengthen regional energy supply chains, Ghana is looking closer to home to meet its fuel needs. The country is moving to source refined petroleum products from Nigeria’s Dangote Petroleum Refinery, a shift that reflects both Ghana’s domestic capacity constraints and a broader continental effort to reduce reliance on fuel imports from outside Africa.

This story is written and edited by Global South World

Ghana has announced its intention to import petroleum products from Nigeria’s Dangote Petroleum Refinery as it aims to address the country’s limited refining capacity.

Speaking at the Nigerian International Energy Summit held from February 2 to 5 in Abuja, the Chief Executive Officer of Ghana’s National Petroleum Authority (NPA), Godwin Kudzo Tameklo, stated that Ghana’s two main refineries are too small to meet local fuel demand.

Tameklo explained that Ghana has already initiated discussions with the Dangote Petroleum Refinery to develop a commercial relationship.

“In Ghana, what we have tried to do as a country is to operate two major refineries and a modular refinery of about 5,000 to 6,000 barrels per day, which is quite small,” he said. “When you talk about 6,000 barrels per day in the Nigerian context, it is insignificant, but in Ghana it is considered a sizeable refinery. We have always relied on imports, both crude oil and refined products. Ghana therefore represents a strong offtake market for the Dangote Refinery.”

“We have had extensive engagements with Alhaji Aliko Dangote to position Ghana to take refined products from Nigeria. Given the proximity between Ghana and Nigeria, increased reliance on Nigeria’s refined petroleum products will help us reduce the cost of fuel delivered to Ghana,” he added.

Devakumar Edwin, Group Vice President (Oil and Gas) of the Dangote Group, confirmed that the refinery has the capacity to serve both domestic and export needs.

“The refinery has an installed capacity of 650,000 barrels per day and is currently operating at about 85%, with steady progress toward full utilisation,” he told local publication Vanguard.

“Nigeria needs only about 50% of our production capacity to meet its petrol and diesel requirements. This leaves significant volumes available for export, and with planned expansions, export volumes will increase further,” he added.

In 2024, Ghana’s oil regulator had indicated the country could purchase refined petroleum from the Dangote Refinery once it reached full operation, potentially replacing monthly European imports valued at $400 million.

Two years earlier, during the Africa CEO Forum Annual Summit in Kigali, Rwanda, Aliko Dangote had criticised the continent’s reliance on fuel imports from outside Africa, stating: “Our capacity is too big for Nigeria, but it would also supply West Africa, Central Africa and South Africa.”