In a groundbreaking move towards a greener, more sustainable future, Oando Plc, under the leadership of Group CEO Wale Tinubu, has announced plans to deploy 5,000 electric buses across Lagos State. This ambitious project is in partnership with the Lagos State Government and is set to transform the city’s public transport system, reducing reliance on fossil fuels and significantly cutting down carbon emissions.
The announcement was made during an exclusive interview with CNBC Africa on the sidelines of the World Economic Forum in Davos, Switzerland. Tinubu explained that the move is part of Oando’s broader commitment to cleaner energy solutions, a cornerstone of the company’s “just energy transition” strategy.
A Just Transition for Africa
“We believe that Africa’s approach to energy transition must be just,” Tinubu said, highlighting the unique challenges faced by the continent in tackling climate change. He emphasized that while Africa contributes only about 3% of global carbon emissions, it bears a disproportionate share of the consequences of climate change, including devastating droughts and extreme weather events.
“Africa is a victim of global warming,” Tinubu stated, stressing that any discussion around decarbonization must also consider Africa’s energy needs. The continent is home to 45% of the global population without access to reliable electricity, and abandoning fossil fuels in favor of cleaner energy could leave millions in the dark.
“We cannot afford to just abandon our fossil fuel resources while our people still live in energy poverty,” he added. “Gas should be part of the energy mix for Africa as a transitional fuel, ensuring we provide energy access while also moving towards cleaner solutions.”
Oando’s Contribution to Carbon Capture and Clean Energy
Oando, a major player in Nigeria’s oil and gas industry, is using electric vehicles (EVs) as part of its carbon capture strategy, according to Tinubu. The company is integrating EV technology into its operations as a means of offsetting the carbon emissions generated by its fossil fuel activities.
“For every bit of carbon we put into the environment, we are committed to ensuring that we also take it out through carbon capture techniques,” Tinubu said, reinforcing the company’s dedication to reducing its environmental footprint.
He further elaborated on the company’s role in supporting global decarbonization efforts. “Electric vehicles are part of the solution. As a company, we’re focusing a lot on e-vehicles and using technology to help address the energy crisis in Africa,” he explained.
5,000 Electric Buses: A Step Toward Cleaner Transport
The centerpiece of Oando’s environmental strategy is the deployment of 5,000 electric buses in Lagos, which will be powered by gas-generated electricity. Public transport, Tinubu noted, accounts for 10% of global emissions, making it a critical area to address in the fight against climate change. By transitioning Lagos’ bus fleet from diesel and petrol to electric vehicles, Oando expects to reduce emissions by 5% almost immediately.
“This is the first step in transforming Nigeria’s public transport system. We are working with the Lagos State Government on this pilot project, and we expect to see 5,000 electric buses deployed in our streets soon,” said Tinubu. The electric buses will not only reduce emissions but also enhance the city’s air quality, making it a cleaner, more sustainable urban environment.
Oando’s Technological Innovations: AI in Oil Drilling
In addition to its electric bus initiative, Oando is also embracing cutting-edge technologies to enhance its oil and gas operations. Tinubu hinted at the potential deployment of artificial intelligence (AI) in the company’s upcoming drilling campaigns. AI, he explained, will help optimize operational efficiency and reduce costs in high-stakes decision-making scenarios.
“AI is a game-changer,” Tinubu said. “In drilling operations, we face critical decisions with high financial implications. AI can simulate multiple outcomes based on past data, helping us make better decisions and improve overall performance.”
By incorporating AI into its operations, Oando aims to stay at the forefront of technological innovation, positioning itself as a leader in the energy sector both locally and internationally.
Oando’s Strategic Expansion: NAOC and Angola Ventures
Oando’s strategic expansion also extends beyond electric vehicles and artificial intelligence. In August 2024, the company made headlines with the acquisition of Nigerian Agip Oil Company (NAOC) from the Italian energy giant, Eni, in a deal worth $783 million. This acquisition has significantly boosted Oando’s oil and gas reserves, positioning the company for increased operational capacity and future growth.
“We have doubled our oil and gas reserves through the NAOC acquisition, and we’re excited about the potential it unlocks for our future operations,” Tinubu revealed.
Moreover, Oando’s subsidiary, Oando Energy Resources (OER), was recently awarded the operatorship of Block KON 13 in Angola’s Onshore Kwanza Basin, further expanding the company’s footprint in Africa’s energy sector.
The Bigger Picture: A Shift Toward Sustainable Energy
Oando’s bold initiatives are part of a broader shift within the Nigerian oil and gas industry toward more sustainable practices. As one of the leading players in the sector, the company’s transition toward cleaner energy sources is a step in the right direction for the country, which has long been criticized for its heavy reliance on fossil fuels.
Tinubu emphasized that Oando’s commitment to cleaner energy solutions is not just about corporate responsibility but about shaping a more sustainable future for Nigeria and Africa at large. “We cannot afford to wait for the world to address climate change. We must act now and leverage our resources to drive the necessary transition,” he stated.
The introduction of electric buses in Lagos is just the beginning. As Oando continues to invest in renewable energy and clean technologies, it is setting a precedent for other Nigerian companies to follow suit, leading the charge in Africa’s energy transition.
