Oando, LAMATA strike deal to pioneer EV mass transit in Nigeria

Sopuruchi Onwuka

Indigenous energy company, Oando, has committed to pioneering mass roll out of electric busses and supporting infrastructure to facilitate Nigeria’s first emission free public transport system.

A unit of the company, Oando Clean Energy Limited (OCEL), signed a Memorandum of Understanding (MoU) with the Lagos Metropolitan Area Transport Authority (LAMATA) to integrate the mass transit electric busses into the metropolitan transportation system.

Spokesperson of Oando, Mrs Alero Balogun, said the MoU establishes a partnership between OCEL and Lagos State in her journey to becoming a sustainable city via the rollout of electric mass transit buses, supporting charging infrastructure and service centers (EV Infrastructure Ecosystem).

She pointed out that the company’s partnership with the government agency tasked with planning, implementing, regulating and franchising sustainable integrated public transport in Lagos is strategic.

Oando declared in a statement that the electric powered mass transit system would significantly contribute to decarbonizing transportation in the highly congested city that account for Nigeria’s highest population and vehicular density.

The Oracle Today reports that the statement from Oando coincides with the 2023 World Environment Day (WED) celebrations which emphasizes “Only One Earth” and focuses on “Living Sustainably in Harmony with Nature.”

The WED 2023 also amplifies the global call for climate action, nature action and pollution action while encouraging everyone, everywhere to live sustainably. It also promotes the global action to save the planet through concerted commitment to protecting the environment and driving socio-economic activities with cleaner energy.

Lagos is one of 732 cities across the world that has signed up to the United Nations Race to Zero campaign, all working towards the realization of net zero carbon emissions by 2050.

Oando Clean Energy Limited is the renewable energy subsidiary of Oando Energy Resources (OER) with agenda to meet the continent’s energy demands by harnessing green and renewable sources, as well as investing in climate friendly and bankable energy projects across the African landscape, starting in Nigeria, Mrs Balogun said.

Oando noted that over 25 million residents make Lagos the most populous city in Africa and among the world’s fastest-growing megacities. The company also pointed at studies that suggest that Lagos could become the world’s most populated city by 2100 with as many as 100 million residents. It also noted that the number of vehicles on Lagos roads have quadrupled in the past decade, adding that vehicular density would worsen.

“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% in annual CO2 emissions,” Oando stated, adding that the partnership with LAMATA on EV Infrastructure Ecosystem would accelerate the attainment of a sustainable road transport system in the State.

Apart from introducing cleaner routes in Lagos metropolitan transportation, Oando stated that the EV transit initiative would bridge the existing gap in available mass transit buses for the increasing number of Lagos commuters.

Mrs Balogun stated that the initiative connects OCEL’s corporate ambitions with Lagos State government’s objective of harnessing renewable sources to create a cleaner and more sustainable environment for generations to come.

Lagos State Commissioner for Transportation, Dr. Frederic Oladeinde, said the MoU with Oando represented the state government’s commitment to cutting greenhouse gases by replacing it with cleaner sources of energy.

“With an understanding that transportation is a key emitter of greenhouse gases in Nigeria, we developed a strategy to cut greenhouse gases by 50%. 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,” he said.

Managing Director of LAMATA, Engr. Abimbola Akinajo said: “We began this journey late last year, and for us, this has been a rapid development. It speaks to the energy and zeal of both organizations and that is commendable. 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 magnitude of its impact is far-reaching, and when you start to look at it as more than a transport initiative, you will see how laudable a project it is. 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.”

Chairman of Oando Clean Energy, Mr Adewale Tinubu, whose remarks were delivered by Dr. Ainojie ‘Alex’ Irune 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 industrialization. Through the signing of this MoU, we are revolutionizing 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 industrialized phase through decentralized 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.”

The Oracle Today reports that Oando has a history of innovative partnerships with government and private players in the energy and transportation sectors. It had initiated a partnership with the Nigerian Railway Corporation (NRC) on rail tankers aimed at reducing tanker incidents and associated losses as well as heavy axle pressure on the nation’s highways.  

The partnership which was conceived as innovative option to achieve efficiency in domestic fuel distribution was discontinued due to rail track unreliability.

Oando had also partnered Lagos State government on rural and urban water schemes, captive power solutions and gas infrastructure development.

The initiative in powering EV mass transit in the country once again confers the company with pioneer and innovative status in transitioning urban transportation from carbon intensity energy and high emission combustion to low carbon and emission neutral systems.