Nationwide Petroleum Authority of Ghana says it’s proposing to import refined petroleum merchandise from Dangote Refinery to spice up its vitality safety and maintain enterprise cooperation with neighbours.
Dr Mustapha Abdul-Hamid, Chief Govt Officer, NPAG, mentioned this on the 2024 OTL Africa Downstream Vitality Week on Tuesday in Lagos.
Talking as one of many panelists, Abdul-Hamidsaid that the transfer was geared toward strengthening Ghana’s vitality safety, and to deepen regional financial cooperation.
The Information Company of Nigeria (NAN) studies that the 2024 OTL, 18th version, has the theme ‘Alliances for Development’.
In keeping with Abdul-Hamid, Ghana is searching for an settlement with Dangote Refinery, and lowering its reliance on extra expensive imports from Rotterdam.
He mentioned that Ghana had additionally expanded its export agreements to incorporate Burkina Faso, Mali, and Niger, supplying worldwide operational services, together with U.S. navy bases.
“The Dangote Refinery, with its large-scale output, is anticipated to fulfill Nigeria’s home demand, enabling extra manufacturing to be exported to Ghana,” he mentioned.
Abdul-Hamid highlighted Ghana’s pipeline settlement with Burkina Faso as a mannequin of efficient regional cooperation to bolster petroleum provide and safety, whereas calling for stronger regional partnerships.
He harassed the significance of a unified foreign money, enhanced infrastructure, and collaborative efforts to deal with West Africa’s vitality challenges.
The chief government officer known as for resource-sharing to drive financial stability, noting that no African nation may obtain sustainable development in isolation.
“Pooling human and infrastructure assets throughout the area can considerably strengthen our economies,” he mentioned.
He advised that West African nations aligned regulatory insurance policies throughout the ECOWAS framework to foster seamless commerce.
Abdul-Hamid acknowledged that, whereas the African Continental Free Commerce Space (AfCFTA) offered a platform for collaboration, international alternate (FX) points hindered intra-regional commerce.
“Heavy reliance on the U.S. greenback for petroleum imports locations fixed stress on native currencies, elevating costs and lowering buying energy,” he defined.
He proposed a standard West African foreign money to cut back FX volatility and stabilise regional economies.
On regional financial stability via shared infrastructure, Abdul-Hamid emphasised the necessity for unified investments in infrastructure to decrease transportation prices and enhance distribution throughout the area.
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“Transporting petroleum by highway is each expensive and dangerous, with hazards similar to banditry.
“A shared pipeline infrastructure is safer and less expensive,” he mentioned.
Abdul-Hamid cited the Ghana-Burkina Faso pipeline settlement, designed to cut back dependence on tanker transport and guarantee constant provide.
He mentioned that Ghana had launched regulatory insurance policies that allowed entrepreneurs to share storage services, selling cooperation and financial stability.
“This reform helps alliances amongst importers, enhancing enterprise success and broader financial stability.”
Ms Oluwatosin Aina, Group Head, Vitality, First Financial institution of Nigeria Ltd., additionally echoed Abdul-Hamid’s name for a unified African foreign money.
Aina famous that dollar-based transactions inflated operational and product prices throughout the continent.
She defined that petroleum transactions with Dangote Refinery and Ghana’s Sentuo Oil Refinery should be dollar-based, “as no African refinery will promote Premium Motor Spirit (PMS) in native currencies.”
The group head mentioned that the tip of Nigeria’s gasoline subsidy had created new funding alternatives in downstream and midstream sectors, making it simpler for banks to fund petroleum imports.
She, nonetheless, famous that dollar-denominated transactions continued to pressure the naira and different regional currencies, calling for strengthened non-oil exports to enhance FX inflows.
Aina advised a mannequin primarily based on the European Union’s frequent foreign money, the euro, to stabilise African markets.
“Francophone African international locations profit from secure alternate charges below their shared foreign money, making them much less susceptible to FX volatility.
“Anglophone nations may undertake an identical strategy to strengthen commerce and monetary stability,” she mentioned.
Abdul-Hamid and Aina harassed the pressing want for a unified infrastructure and foreign money reforms.
They mentioned that by aligning fiscal insurance policies, petroleum infrastructure, and regulatory frameworks, West African nations may handle foreign money challenges and guarantee inexpensive, secure petroleum pricing for residents.
