Oando Clean Energy Limited (OCEL) and the Lagos Metropolitan Area Transport Authority (LAMATA) have both made public announcements stating that they have received receipt of the electric mass transit buses for Lagos State, the commercial capital city of Nigeria.
The phase of the Sustainable Transport Initiative that is being championed by OCEL which is known as the Proof of Concept phase, would begin after the buses were delivered.
On Thursday, April 28, 2022, OCEL and LAMATA signed a Memorandum of Understanding (MoU) to allow the successful deployment of an Electric Vehicle (EV) Infrastructure Ecosystem (electric buses, charging stations, and other supporting infrastructure) regarding the attainment of a sustainable road transport system in the state. LAMATA is an acronym for the Local Area Metropolitan Area Transportation Authority.
It was also anticipated that the memorandum of understanding would help bridge the gap in the existing mass transit bus system for the growing number of commuters in Lagos. This would be a crucial element of the bigger effort that the State Government is making to strengthen the mass transit infrastructure.
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Details of the Statement on OCEL Partnership
The statement explained as follows: “OCEL, with Yutong Bus Co Limited (Yutong), the world’s largest electric vehicle manufacturer to produce the electric buses, equipped with air conditioning and Wi-Fi.
“In addition to the arrival of these electric buses, OCEL has also taken delivery of the charging stations and spare parts necessary to ensure their effective operation.
“Consequently, and in line with the provisions of the partnership between OCEL and LAMATA, the receipt of both the buses and charging stations marks the commencement of our Sustainable Transport Initiative, which is one of the Company’s pipeline projects to support Nigeria in meeting her goal of net zero by 2060.”
It was pointed out that “the company’s strategic vision is to decarbonise the transport system in Nigeria and in the process, strengthen the socio-economic impact of transportation within the country.”
The Impact of the Programme
Beginning in Lagos State and eventually expanding to the rest of the country, this programme would transform the existing combustion mass transit buses into electric vehicles over the course of the next seven years and through the introduction of more than 12,000 new buses.
“In the medium to long term, and in line with our ambitions, our efforts within sustainable transport will lead to improved air quality, enhanced public health, enable the employment of at least 3,000 new drivers and an additional 2,000 workers to support bus maintenance, depot management, etc., as well as an estimated economic cost savings of $2.6 billion (3.6% of Lagos’s GDP).”
Additionally, it was stated that the company’s roll-out plan for electric vehicles is strategically aligned with the Nigeria Energy Transition Plan (NETP), specifically supporting the government’s roadmap for the implementation of electric vehicles (EVs) across the entirety of Nigeria, as well as the government’s ambition to boost local capacity in the medium term through the construction of electric vehicle assembly plants.
It is anticipated that the Oando and Yutong Joint Venture Partnership will, among other things, manufacture and deploy additional electric buses throughout the Pilot and Roll-out phases of the collaboration with Lagos State through LAMATA; design and organise training programmes targeted at the following key stakeholders – bus drivers, bus operators, and regulators including, but not limited to, LAMATA and the Ministry of Transport.”
“Provide technical support and after-sales service; manage a supply chain network to support the availability of spare parts as and when required; construct a local EV assembly plant to boost indigenous capacity.”
How the First EV Service is Being received
Mr. Frank Lee, Managing Director of Yutong West Africa, made the following statement in response to the accomplishment that was accomplished: “This is a watershed moment for Yutong.”
He admitted that it is the first time that they have sent electric buses for public transport to any country in Sub-Saharan Africa, and it also marks the beginning of the process that will lead to the widespread implementation of an electric-powered public road transport system in Nigeria.
“We are excited to be embarking on this journey in partnership with Oando, an organisation with a history of stellar performance in the energy sector.”
According to him, they are hopeful to see a quick turnaround in their joint plans to advance all aspects of the country’s transition to environmentally friendly vehicles, including the development of local capacity through the delivery of, and exposure to extensive training programmes for all stakeholders, including drivers, operators, and the regulators.
He also revealed that because of their expansion into Sub-Saharan Africa, they have become a leading global provider of electric vehicles, serving clients in regions as diverse as the Middle East, Europe, South America, and Asia.
“Our electric vehicles offer outstanding performance due to their advanced technology capabilities and testing for different terrains; all of which make our buses particularly well suited for use as a public transportation option in Nigeria,” he added
The Managing Director of LAMATA, Engr. Mrs. Abimbola Akinajo, made the following statement on behalf of LAMATA: “The arrival of the electric buses confirms Lagos State Government’s commitment to the reduction of greenhouse gas effects, using modern rolling stock, powered by clean energy, in the state’s transport operations.
“It is for this reason we are partnering with the private sector to facilitate the transition to the use of cleaner energy in public transport thereby actualizing our vision of a transport system that provides options to the people and improves their lifestyle by reducing carbon emissions generated by fossil fuelled rolling stock, through the gradual phasing out of vehicles contributing to the pollution of the environment.”
More remarks
In addition, the Chairman of OCEL, Adewale Tinubu, provided some more commentary, saying that “audacity and innovation have always been key tenets in our journey to transform Nigeria’s energy future.” He also declared that this spirit is what has gotten the country to this point.
He said, “The arrival of our electric mass transit buses and development of an EV infrastructure ecosystem is a reminder that the only way to remain ahead of the curve is by being unafraid to break new ground and consistently looking for opportunities to leapfrog.
“Furthermore, this project underscores the African saying, ‘If you want to go fast, go alone; if you want to go far, go together.’ Public-Private Partnerships have been critical to getting the project to this point and will continue to fuel our expansion across the entire country.”
He also appreciated the concerted efforts that the Government of Lagos State has made through LAMATA in order to see this project to completion.
According to him, the launch of this project provides them with a platform to demonstrate to other states what is possible and opens the door for discussions on bespoke solutions to suit their unique needs. In addition, the project serves as a model that can be replicated by other organisations that are interested in venturing into the field of sustainable transportation.
Dr. Ainojie Irune, President and Chief Executive Officer of OCEL, stated in his remarks that “This is a pivotal moment for Lagos State and the country at large. The development of a sustainable transport ecosystem is much more than the deployment of electric vehicles; it’s about reducing the carbon footprint of the seven million public transport commuters and positively impacting the socio-economic indices surrounding transportation.
The electric vehicle (EV) infrastructure, which was developed to facilitate optimal efficiency of the buses, will constitute the artery of tomorrow’s EV utilisation in Nigeria by providing charging stations, servicing, spare parts, skill development, and knowledge transfer. This infrastructure was built to support optimal efficiency of the buses.
“The transition from an idea proposition to an operational initiative is validation of our collective commitment to realising the country’s ambition of becoming a net-zero carbon emitter by 2060.”
He also admitted that for OCEL, Lagos State is just the beginning; OCEL looks forward to replicating this model across the country through strategic partnerships spanning both the public and private sectors.
