Oando Plc, one of Nigeria’s leading energy companies, has announced a groundbreaking partnership with the Lagos State Government to deploy 5,000 electric buses as part of efforts to transition public transportation in the state to cleaner energy. This was disclosed by Wale Tinubu, Group Chief Executive Officer of Oando, during an interview with CNBC Africa at the recently concluded World Economic Forum in Davos, Switzerland.
Tinubu explained that the initiative aligns with Oando’s commitment to a “just energy transition,” focusing on addressing Africa’s energy poverty while advancing cleaner energy solutions. Highlighting Africa’s unique challenges, he emphasized that the continent contributes only 3% of global emissions yet disproportionately suffers the effects of climate change.
“The arguments for decarbonisation are as important as the arguments for a just transition,” Tinubu said. “Africa has 45% of its population lacking access to electricity. We need to use our gas resources as part of the energy mix to service the needs of our continent while transitioning gradually to cleaner alternatives.”
The deployment of electric buses is part of Oando’s broader strategy to tackle global emissions and support decarbonisation. Tinubu noted that public transportation accounts for 10% of global emissions, and the transition to electric buses could cut emissions by 5% almost immediately.
“We’re working on a pilot project with the Lagos State Government to replace diesel and petrol-powered buses with 5,000 e-buses, using gas as a transitional fuel to generate electricity for the buses,” Tinubu stated.
Beyond its focus on electric vehicles, Oando is also exploring the use of artificial intelligence (AI) to enhance operational efficiency in its oil drilling campaigns. Tinubu described AI as a “game-changer” that could improve decision-making, optimize resources, and reduce costs in the company’s future projects.
- In August 2024, Oando acquired Nigerian Agip Oil Company (NAOC) from Italian energy giant Eni in a $783 million deal, significantly increasing its oil and gas reserves.
- Earlier this year, Oando Energy Resources, a subsidiary of Oando, secured the operatorship of Block KON 13 in Angola’s Onshore Kwanza Basin, expanding its footprint in Africa.
Oando’s commitment to cleaner energy and technological innovation highlights its evolving role as a key player in Nigeria’s energy transition and its contribution to global sustainability efforts.
