According to Ghana’s National Petroleum Authority, the country wants to increase its energy security and maintain commercial ties with its neighbours by importing refined petroleum products from Dangote Refinery.

This was said by Dr. Mustapha Abdul-Hamid, the CEO of NPAG, during the 2024 OTL Africa Downstream Energy Week in Lagos on Tuesday.

Speaking as a panellist, Abdul-Hamids stated that the action was intended to improve regional economic cooperation and bolster Ghana’s energy security.

According to the News Agency of Nigeria (NAN), “Alliances for Growth” is the subject for the 18th edition of the 2024 OTL.

Abdul-Hamid claims that Ghana is attempting to reduce its dependency on more expensive imports from Rotterdam and negotiate an arrangement with Dangote Refinery.

In addition, he added, Ghana has extended its export contracts to Burkina Faso, Mali, and Niger, providing international operating facilities, such as American military installations.

“With its massive output, the Dangote Refinery should be able to meet Nigeria’s domestic demand, allowing excess production to be exported to Ghana,” he stated.

While advocating for more robust regional alliances, Abdul-Hamid cited Ghana’s pipeline deal with Burkina Faso as an example of successful regional collaboration to support petroleum supply and security.

In order to solve West Africa’s energy problems, he emphasised the significance of a single currency, improved infrastructure, and cooperative efforts.

The CEO urged resource sharing to promote economic stability, pointing out that no African country could attain sustained growth on its own.

He stressed the importance of a single currency, better infrastructure, and collaborative efforts to address West Africa’s energy issues.

The CEO emphasised that no African nation could achieve sustainable prosperity on its own and called for resource sharing to advance economic stability.

Our economy may be greatly strengthened by combining infrastructure and people resources around the area, he added.

In order to promote smooth commerce, he recommended that West African countries harmonise their regulatory policies under the ECOWAS framework.

Abdul-Hamid admitted that intra-regional commerce was hampered by foreign exchange (FX) problems, even if the African Continental Free commerce Area (AfCFTA) offered a forum for cooperation.

“Local currencies are constantly under pressure due to a heavy reliance on the U.S. dollar for petroleum imports, which raises prices and lowers purchasing power,” he noted.

In order to stabilise regional economies and lessen foreign exchange volatility, he suggested a single West African currency.

Abdul-Hamid underlined the necessity of coordinated infrastructure investments to reduce transit costs and enhance distribution throughout the area in order to promote regional economic stability through shared infrastructure.

Petroleum transportation via road is expensive and dangerous, including risks like banditry.

“A shared pipeline infrastructure is more economical and safer,” he stated.

Abdul-Hamid mentioned the pipeline arrangement between Ghana and Burkina Faso, which aims to guarantee a steady supply and lessen reliance on tanker transportation.

He said that in order to foster collaboration and economic stability, Ghana had implemented regulations that let traders to share storage facilities.

This change encourages importers to establish coalitions, which improves corporate success and overall economic stability.

Abdul-Hamid’s demand for a single African currency was also repeated by Ms. Oluwatosin Aina, Group Head, Energy, First Bank of Nigeria Ltd.

Dollar-based transactions, according to Aina, increased product and operating expenses throughout the continent.

She clarified that since “no African refinery will sell Premium Motor Spirit (PMS) in local currencies,” petroleum transactions with Dangote Refinery and Sentuo Oil Refinery in Ghana must be dollar-based.

According to the company chairman, banks now find it simpler to finance petroleum imports because of the increased investment prospects in the midstream and downstream sectors brought about by the removal of Nigeria’s fuel subsidy.

She called for more non-oil exports to boost foreign exchange inflows, but pointed out that dollar-denominated transactions were still putting pressure on the naira and other regional currencies.

To stabilise African markets, Aina proposed a mechanism modelled after the euro, the unified currency of the European Union.

Under their common currency, Francophone African nations have stable exchange rates, which reduces their susceptibility to fluctuations in foreign exchange prices.

She stated that “Anglophone countries could take a similar approach to strengthen trade and financial stability.”

Aina and Abdul-Hamid emphasised the pressing need for currency changes and a united infrastructure.

They claimed that West African countries could solve their currency problems and guarantee stable, reasonably priced petroleum prices for their citizens by coordinating their fiscal policies, infrastructure, and regulatory frameworks.