President John Dramani Mahama’s decision to expand the Tema Oil Refinery’s (TOR) processing capacity to 100,000 barrels of crude oil per day is less about producing more oil and more about capturing more value from every barrel Ghana consumes.
For decades, Ghana has lived with an economic contradiction. The country exports crude oil from offshore fields, yet spends billions of cedis every year importing refined petroleum products because domestic refining capacity has remained inadequate. The government’s latest plan seeks to reverse that equation—not by competing with Africa’s oil giants, but by refining more crude at home and retaining a larger share of the economic value.
Speaking at the commissioning of TOR’s refurbished Crude Distillation Unit (CDU), President Mahama said the government would scale up the refinery’s capacity while insulating it from political interference to ensure it operates as a commercially viable business.
“The revival of TOR is a testament to what dedicated leadership and committed workers can achieve when given the opportunity to perform,” the President said, noting that the refurbishment was completed without direct financial support from government.
The refinery has already resumed processing crude oil, including Ghana’s Jubilee blend, marking its return to active refining after years of operational disruptions.
The Real Prize Is Value Addition
Unlike major oil producers such as Nigeria, Ghana does not produce crude oil on a scale that would allow it to dominate regional petroleum markets. Production has averaged just over 100,000 barrels a day in recent years and remains vulnerable to natural declines from ageing fields unless new investments are made.
That means expanding TOR’s refining capacity does not imply Ghana will suddenly become self-sufficient in crude oil. If refinery demand exceeds domestic production, Ghana may still need to import crude to keep the plant operating efficiently.
The real economic opportunity lies elsewhere.
Instead of exporting crude oil and importing expensive finished fuels, Ghana can process more crude domestically whether sourced locally or imported and retain the refining margins, jobs and industrial activity within its own economy.
Every additional barrel refined in Tema generates work for engineers, transport operators, storage facilities, maintenance contractors, logistics companies and fuel distributors before reaching consumers.
A Multi-Billion-Cedi Import Bill
The timing of the expansion is significant.
According to the latest Ghana Statistical Service trade data, diesel alone cost Ghana GH¢28.5 billion in imports in 2025, representing the country’s single largest imported product. Petrol and other light petroleum products added another GH¢23.2 billion, meaning refined fuels accounted for more than one-fifth of Ghana’s total import bill.
Nigeria has increasingly become Ghana’s largest supplier of refined petroleum products, highlighting how the country’s fuel security has become tied to external refining capacity despite producing crude oil of its own.
A stronger TOR would not eliminate imports overnight, but it could gradually reduce Ghana’s dependence on imported refined products while changing the composition of imports towards crude feedstock that can be processed locally.
Economic Benefits Go Beyond Fuel
The implications extend well beyond the energy sector.
Reducing imports of refined fuels would ease pressure on Ghana’s foreign exchange reserves and improve the trade balance by retaining more petroleum-related spending within the domestic economy.
A larger refining industry could also strengthen supply chains serving manufacturing, mining, transport and aviation while improving energy security during periods of international market disruptions.
Greater domestic processing would also increase tax revenues, stimulate investment in petroleum logistics and storage infrastructure, and support additional employment across the downstream sector.
For businesses, more reliable local fuel production could help reduce supply uncertainties that often arise during global market shocks.
Capacity Alone Will Not Deliver Success
Yet increasing installed capacity is only part of the equation.
TOR’s long-term success will depend on securing reliable crude supplies, maintaining competitive operating costs, financing crude purchases, avoiding prolonged maintenance shutdowns and operating under strong commercial discipline.
President Mahama acknowledged that governance will be central to achieving those objectives.
He said the government intends to shield the refinery from political interference—a longstanding concern that many industry observers believe contributed to TOR’s financial and operational difficulties over the years.
That commitment may ultimately prove as important as the refinery’s physical expansion.
A Test of Industrial Policy
The recommissioning of the Crude Distillation Unit therefore represents more than the revival of a refinery. It is an early test of whether Ghana can convert its natural resources into greater industrial value instead of exporting raw materials and importing finished products.
The 100,000-barrel target is not a race against larger oil-producing nations. It is a strategy to extract more economic benefit from every barrel processed within Ghana’s borders.
If the refinery can sustain commercial operations at the planned scale, TOR’s expansion could become less a story about oil production and more a story about industrialisation, value addition and a gradual reduction in Ghana’s dependence on imported fuels.
