Oando Clean Energy Limited has partnered with the Lagos State Government Agency, LAMATA, to bridge the gap in the current mass transit bus system and improve mass transit infrastructure. The initiative will lead to improved air quality, enhanced public health, employment opportunities, and estimated economic cost savings of US$2.6 billion (3.6% of Lagos’s GDP).
This information was disclosed in a corporate disclosure report by Oando on the NGX website.
This initiative will transition the current combustion mass transit buses to electric, starting in Lagos State and eventually across the country, with a rollout of over 12,000 buses over the next seven years. The EV roll-out plan is strategically aligned with the Nigeria Energy Transition Plan, and it supports the government’s roadmap for EV implementation across Nigeria, with the ambition to boost local capacity in the medium term through the construction of EV assembly plants.
Oando Clean Energy Limited’s strategic vision is to decarbonize the transport system in Nigeria and, in the process, strengthen the socio-economic impact of transportation within the country. The company’s efforts within sustainable transport will lead to improved air quality, enhanced public health, the employment of at least 3,000 new drivers, and an additional 2,000 workers to support bus maintenance, depot management, etc.
Oando Clean Energy Limited has also announced its partnership with Yutong Bus Co. Limited to produce electric buses equipped with air conditioning and Wi-Fi. The company has also taken delivery of the charging stations and spare parts necessary to ensure their effective operation. Furthermore, the Oando-Yutong Joint Venture Partnership shall manufacture and deploy additional electric buses during the pilot and rollout phases of the partnership with Lagos State through LAMATA. The partners will also design and facilitate training programs targeted at critical stakeholders such as bus drivers, bus operators, and regulators, including LAMATA and the Ministry of Transport. OCEL will provide technical support and after-sales service and manage a supply chain network to support the availability of spare parts as and when required. The partnership will also construct a local EV assembly plant to boost indigenous capacity.
Mr. Frank Lee, Managing Director, Yutong West Africa, commented on the partnership, stating that it was a watershed moment for Yutong and a first step in the large-scale deployment of an electric-powered public road transport system in Nigeria. He further expressed his excitement about the opportunity to advance all facets of the country’s transition to eco-friendly vehicles, including the development of local capacity through extensive training programs for all stakeholders, from drivers to operators and regulators. The Chairman of OCEL, Adewale Tinubu, stated that audacity and innovation had always been key tenets in their journey to transform Nigeria’s energy future. He further commended the collaborative efforts of all parties involved and noted that public-private partnerships had been critical to getting the project to this point and would continue to fuel its expansion across the entire country.
The initiative by Oando Clean Energy Limited and Yutong Bus Co. Limited is a significant step towards sustainable transportation in Nigeria. The deployment of electric mass transit buses, charging stations, and other supporting infrastructure will not only improve the air quality and public health of the people in Lagos State but also create job opportunities and provide estimated economic cost savings of US$2.6 billion (3.6% of Lagos’s GDP). The partnership is strategically aligned with the Nigeria Energy Transition Plan and supports the government’s ambition to boost local capacity in the medium term through the construction of EV assembly plants. This partnership is an excellent example of the importance of public-private partnerships in advancing sustainable development goals.
