Oando to deploy 5,000 electric buses for public transport in Lagos — Wale Tinubu

The Group Chief Executive Officer of Oando Plc, Wale Tinubu, has announced that the oil company is partnering with the Lagos State Government to deploy 5,000 electric buses for public transportation in the state.

Tinubu made the announcement in an interview with CNBC Africa during the recently concluded World Economic Forum in Davos, Switzerland.

He explained that the company’s decision to invest in electric vehicles, particularly for public transport, is driven by its commitment to adopting cleaner energy solutions as part of its ‘just’ energy transition strategy.

Tinubu made a strong case for a ‘just transition’ rather than prioritising decarbonisation in Africa, highlighting that the continent is disproportionately affected by global warming while contributing only about 3 percent of global emissions.

He argued that Africa cannot afford to completely abandon its vast fossil fuel reserves in favour of clean energy sources, especially while much of the population remains in energy poverty.

“The case for decarbonisation is just as important as the case for a just transition,” Tinubu said. “That transition must take into account that Africa has 45 percent of its population without access to electricity or energy products. Therefore, our first step must be to use what we have, which means incorporating gas into the energy mix as a transitional fuel while we work towards a diversified energy strategy.”

Tinubu noted that, as a major player in Nigeria’s oil and gas industry, Oando is adopting electric vehicles as part of its efforts to support global decarbonisation.

“For every unit of carbon we contribute to the environment, we are also implementing carbon capture techniques to offset this impact,” he explained. “We are prioritising the development of clean energy solutions, such as e-vehicles, as part of our broader commitment to a sustainable energy transition.”

The company will deploy 5,000 electric buses in Lagos as part of its initiative to assist Nigeria in transitioning its public transport system from combustion engines to electric vehicles.

“We are using gas as a transitional fuel to create electricity for powering the buses. Transport accounts for 10% of global emissions, so by addressing public transport emissions, we could reduce overall emissions by 5% almost immediately,” Tinubu stated. “Our first step is a pilot project in Lagos, where we plan to deploy up to 5,000 electric buses, working alongside the state government.”

Tinubu also revealed that Oando is exploring the use of artificial intelligence (AI) in its upcoming drilling campaigns to enhance operational efficiency and performance.

He explained that AI will play a critical role in optimising resource use and improving decision-making, particularly in the company’s drilling operations where cost-effective decisions are crucial.

“AI is a game-changer. In our drilling operations, we must make high-stakes decisions that directly impact costs. By using AI, we can analyse various possible outcomes based on previous experiences, enabling us to make more informed and effective decisions,” Tinubu added. “This is something we’re excited to deploy in our next drilling campaign.”