Ghana’s National Petroleum Authority (NPAG) CEO Mustapha Abdul-Hamid has announced plans to increase energy security and maintain commercial ties with neighboring countries by importing refined petroleum products from Dangote Refinery. The move aims to improve regional economic cooperation and boost Ghana’s energy security. Abdul-Hamid highlighted the importance of a single currency, improved infrastructure, and cooperative efforts in solving West Africa’s energy problems. He emphasized the need for resource sharing to promote economic stability, stating that no African country could attain sustained growth on its own. Abdul-Hamid also stressed the significance of diversifying energy sources and investing in renewable energy to ensure long-term sustainability. Additionally, he called for increased collaboration among West African nations to address common challenges and achieve mutual benefits.
To promote smooth trade, Abdul-Hamid recommended harmonizing regulatory policies under the ECOWAS framework. He acknowledged that while the African Continental Free Trade Area (AfCFTA) provided a platform for collaboration, foreign exchange (FX) issues hindered intra-regional trade. He proposed a common West African currency to reduce FX volatility and stabilize regional economies.
Unified investments in infrastructure are also crucial for regional economic stability through shared infrastructure. Transporting petroleum by road is costly and risky, with hazards such as banditry. A shared pipeline infrastructure is safer and more cost-effective. The Ghana-Burkina Faso pipeline agreement demonstrates this, reducing dependence on tanker transport and ensuring consistent supply.
Oluwatosin Aina, Group Head, Energy, First Bank of Nigeria Ltd., also echoed Abdul-Hamid’s call for a unified African currency. She noted that dollar-based transactions inflated operational and product costs across the continent. Petroleum transactions with Dangote Refinery and Ghana’s Sentuo Oil Refinery must be dollar-based, as no African refinery will sell Premium Motor Spirit (PMS) in local currencies.
The end of Nigeria’s fuel subsidy created new investment opportunities in downstream and midstream sectors, making it easier for banks to fund petroleum imports. However, dollar-denominated transactions continued to strain the naira and other regional currencies, calling for strengthened non-oil exports to improve FX inflows. A model based on the European Union’s common currency, the euro, could help stabilize African markets.
In conclusion, Abdul-Hamid and Aina stressed the urgent need for a unified infrastructure and currency reforms to address currency challenges and ensure affordable, stable petroleum pricing for citizens in West Africa.
