…….by Ben Ndubuwa…..
Ghana is advocating for a harmonized currency across the Economic Community of West African States (ECOWAS) to facilitate smoother petroleum imports and exports, particularly from Nigeria’s Dangote Petroleum Refinery. This appeal was made by Mustapha Abdul-Hamid, Chairman of Ghana’s National Petroleum Authority, during the ongoing 2024 OTL Africa Downstream Energy Week in Lagos.
Abdul-Hamid underscored the challenges African countries face due to an overreliance on the U.S. dollar for international trade, which often strains local currencies. “It doesn’t make sense that Ghana needs dollars to import fuel from Nigeria, and likewise, Nigeria would need dollars to import from us,” he remarked. “This dependency drives up prices and devalues our currencies.”
He further highlighted the potential of the African Continental Free Trade Agreement (AfCFTA) to bolster intra-African trade, stating, “If Ghana is going to import petroleum from the Dangote refinery, we would still have to pay in dollars. This doesn’t make a lot of sense to me. We should move toward a common currency that benefits us all.” Abdul-Hamid said.
He emphasized that Ghana’s demand for petroleum imports places a $400 million monthly burden on the nation. He suggested that other ECOWAS nations are likely experiencing similar challenges. “Where are Nigerian petroleum importers going to find the dollars they need?” he asked, warning that the pressure on local currencies would only grow.
Additionally, Abdul-Hamid announced Ghana’s intention to import fuel from the Dangote refinery, which is set to reach a capacity of 650,000 barrels per day. He noted that buying from Nigeria would be more efficient than sourcing from Rotterdam, Holland.
In response to fuel smuggling issues, he advised Nigeria’s Midstream and Downstream Petroleum Regulatory Authority to establish a security unit for monitoring cross-border trade.
Aliko Dangote, President of the Dangote refinery, had appealed to local petroleum marketers to source their fuel domestically, revealing that the refinery currently has about 500 million liters of petrol in storage.