Lagos State Partners Oando to Introduce Electric Mass Transit Buses

Oando, one of Nigeria’s leading indigenous energy solution providers has recorded another milestone with its signing of a Memorandum of Understanding (MoU) with the Lagos Metropolitan Area Transport Authority (LAMATA), the Lagos State Government agency tasked with planning, implementing, regulating and franchising sustainable integrated public transport in Lagos. The MoU was signed on April 28, 2022.

According to a statement, the MoU establishes a partnership between Oando Clean Energy Limited (OCEL), the renewable energy business of Oando, and Lagos State in the state government’s journey to becoming a sustainable city via the rollout of electric mass transit buses, supporting charging infrastructure and service centers (EV Infrastructure Ecosystem). 

It pointed out that with over 25 million residents, Lagos remains the most populous city in Africa and among the top ten of the world’s fastest-growing megacities.

According to the statement, over the last decade, the number of vehicles on Lagos roads have quadrupled, yet studies had suggested that the state could become the world’s most populated city by 2100 with as many as 100 million residents; and as the city grows, so will the number of vehicles.

“This upward trajectory in vehicle numbers poses a significant challenge as transportation has been identified as the key contributing sector at circa 23 to 30 per cent in annual CO2 emissions.

“In addition, the automotive future is looking increasingly electric globally, due to growing regulatory moves, including forthcoming bans on sales of internal combustion engine (ICE) vehicles, changing consumer behavior, and ongoing improvements in battery and charging technology,” it added.

It noted that by 2035, the world’s major automotive markets—the United States, European Union, and China—were expected to sell only Electric Vehicles (EVs), adding that by 2050, 80 per cent of the world’s vehicle sales were expected to be electric.

“This laudable partnership will form part of several interventions such as the Lagos state blue and red rail, that would set the tone for the gradual decarbonisation of the road transport sector by Lagos State,” it added.

Commenting on the MoU signing, the Managing Director, LAMATA, Engr. Abimbola Akinajo said: “Oando Clean Energy came to us with a comprehensive solution that went beyond electric mass transit buses to include supporting infrastructure, and this was key for us, as the full remit of an EV support ecosystem is the only way to achieve success. This initiative will not only accelerate the government’s transportation agenda, but also positively impact the health of Lagosians and the environment.

“The Oando brand comes with know-how and experience, and we are relying on this to successfully move from MoU signing to actual implementation that will in the medium to long term benefit over 22 million Lagos commuters.  We look forward to a very robust and fruitful partnership.”

Commenting on the launch, the Chairman, Oando Clean Energy, Adewale Tinubu, said: “Oando Clean Energy was born out of a need to curate the best energy mix to propel Nigeria and indeed Africa, to its full potential.  As a company, Oando has always championed Public-Private Partnerships as fundamental to Nigeria’s industrialisation.

“Through the signing of this MoU, we are revolutionising the landscape of mobility by pioneering e-mobility in Lagos.  Furthermore, we remain dedicated to achieving our national commitment to net-zero by 2060, ending energy deficiencies and further propelling the country to an industrialised phase through decentralised and sustainable energy systems.

“We are excited to be embarking on this journey with Lagos State and must commend their foresight and willingness to forge a template for others to follow.  It’s easy to be perturbed by the perceived challenges that come with the mega-city status tag, but by taking this bold step, Lagos is showing the continent what is indeed possible and giving other cities the impetus to redefine today how to build a public transport system for the future.”

He pointed out that today, investments in more sustainable transport infrastructure solutions could deliver environmental, social and economic benefits beyond a reduction in Greenhouse Gas (GHG) emissions.

On his part, the Commissioner for Transport, Lagos State, Dr. Fred Oladeyinde said: “With an understanding that transportation is a key emitter of greenhouse gases in Nigeria, we developed a strategy to cut greenhouse gases by 50 per cent.

“A key component of this strategy was identifying and developing a more robust mass transit system for Lagos that would include rail and waterways amongst others. Using electricity to power mass transit is a step in the right direction, and from there we would gradually transit to private cars.

“This is just the beginning, there is still a lot more to come on stream.  I commend LAMATA and Oando on this MoU signing, and both parties can be rest assured that they have my full backing to ensure success.”

The initiative reinforces the importance of Public Private Partnerships (PPP) in enabling the continent to actualise its industrialisation goals.

Across Africa, the PPP model has become increasingly critical as both a funding and operational mechanism for social and economic infrastructure.

“This is not the first time that Oando has partnered with the State Government nor the first time it’s created a blueprint for others to adopt in the realm of cleaner energy solutions. In the past, through its erstwhile mid-stream vehicle, Oando Gas & Power (OGP), today rebranded Axxela, the company pioneered private sector gas pipeline development in 2007 and championed the development of Independent Power Plants (IPPs) including the Akute and Alausa IPPs powering Lagos Water Cooperation and the Lagos State secretariat respectively,” the statement added.