Private sector operators in Nigeria are diligently removing encumbrances hindering the country’s advancement and investment in the new energy sector.
Nigeria, in a deliberate move to Key into the new energy revolution, launched its Energy Transition Plan in August 2022 to demonstrate its commitment to achieving carbon neutrality, ending energy poverty, and driving economic growth.
The plan focuses on power, cooking, oil and gas, transport, and industry.
Vice President Yemi Osinbajo joined other players in the energy sector to launch the plan, which showcased Nigeria’s pathway to achieving net-zero emissions by 2060.
Osinbajo, during the launch said it was time Nigeria and other African countries took ownership of transition pathways and design climate-sensitive strategies that would address peculiar growth objectives.
He said, “There is a clear need for African nations to engage more critically and vocally in conversations on our global climate future. More importantly, we need to take ownership of our transition pathways and design climate-sensitive strategies that address our growth objectives. This is what Nigeria has sought to do with its energy transition plan. It was designed to tackle the dual crises of energy poverty and climate change, and deliver SDG Seven by 2030 and Net Zero by 2060.
“While centering the provision of energy for development, industrialisation and economic growth, we anchored the plan on key objectives, including lifting 100 million people out of poverty in a decade, driving economic growth, bringing modern energy services to the full population and managing the expected long term job loss in the oil sector due to global decarbonisation.
“Given these objectives, the plan recognises the role of natural gas in the short term to facilitate the establishment of this low energy capacity and address the nation’s clean cooking deficit in the form of LPG.
“The plan envisions vibrant industries powered by low carbon technologies, streets lined with electric vehicles, and livelihoods enabled by sufficient and clean energy. The plan can create about 340,000 jobs by 2030 and 840,000 jobs by 2060 and it presents a unique opportunity to deliver truly low carbon and rapid development model in Africa’s largest economy.”
In furtherance of Oando Clean Energy Limited’s, OCEL, commitment to the initiative driven by government chose to partner with the Lagos Metropolitan Area Transport Authority, LAMATA, with the acquisition of the electric mass transit buses that will kick off the Proof of Concept phase of its Sustainable Transport Initiative.
Specifically, on Thursday, April 28, 2022, OCEL and LAMATA, the Lagos State Government Agency tasked with planning, implementing, regulating and franchising sustainable integrated public transport in Lagos, signed a Memorandum of Understanding (MoU) to enable the successful deployment of an Electric Vehicle (EV) Infrastructure Ecosystem (electric buses, charging stations, and other supporting infrastructure) towards the attainment of a sustainable road transport system in Lagos State.
The MoU intends also to bridge the gap in the current mass transit bus system for the increasing number of Lagos commuters and make up a significant part of the State Government’s larger drive to improve mass transit infrastructure.
In line with its culture of excellence, OCEL, partnered with Yutong Bus Co Limited (referred to as “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 its Sustainable Transport Initiative, which is one of the Company’s pipeline projects to support Nigeria in meeting her goal of net zero by 2060.
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. Over the next seven years, and through the rollout of over 12,000 buses, this initiative will transition the current combustion mass transit buses to electric, starting in Lagos State and eventually across the country.
In the medium to long term, and in line with its ambitions, its 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 estimated economic cost savings of US$2.6bn (3.6 per cent of Lagos’s GDP).
Notably, the company’s EV roll-out plan is strategically aligned with the Nigeria Energy Transition Plan (NETP); specifically supporting the Government’s roadmap for EV implementation across Nigeria and its ambition to boost local capacity in the medium term through the construction of EV assembly plants.
NATIONAL ECONOMY, reports that the Oando -Yutong Joint Venture Partnership would lead to the manufacture and deployment of additional electric buses during the Pilot and Roll-out phases of the partnership with Lagos State through LAMATA, design and facilitate training programs targeted at the following critical stakeholders bus drivers, bus operators, and regulators including but not limited to LAMATA and the ministry of transport.
It will also provide technical support and after-sales service, manage a supply chain network to support the availability of spare parts as and when required as well as the
construction of a local EV assembly plant to boost indigenous capacity.
Commenting, Mr. Frank Lee, Managing Director, Yutong West Africa stated, “This is a watershed moment for Yutong. It’s our first delivery of electric mass transit buses in Sub-Saharan Africa and the first step in the large-scale deployment 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 and are hopeful to see a quick turnaround in our joint plans to advance all facets of the country’s transition to eco-friendly vehicles, including the development of local capacity through the delivery of, and exposure to extensive training programs for all stakeholders, from drivers to operators and the regulators.
“Our foray into Sub-Saharan Africa has transformed us into a global supplier of EVs with customers across 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 Nigeri.”
In her comments, the managing director of LAMATA, Engr. Mrs. Abimbola Akinajo said, ‘’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 actualising 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.”
Commenting further, the chairman, OCEL, Adewale Tinubu, said, “Audacity and innovation have always been key tenets in our journey to transform Nigeria’s energy future. It’s this spirit that has brought us to this juncture today – at the forefront of propelling Nigeria towards realizing her net-zero targets. 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. I must commend the collaborative efforts of the Lagos State Government through LAMATA in seeing this project through. The commencement of this project gives us a platform to showcase to other States what is possible and open the door for engagements on bespoke solutions to suit their local needs as well as act as a model to be adopted by other organisations looking to venture into sustainable transportation.”
In his remarks, the president & CEO, OCEL, Dr. Ainojie Irune said, “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 EV infrastructure, built to facilitate optimal efficiency of the buses, will form the artery of tomorrow’s EV utilisation in Nigeria by providing charging stations, servicing, spare parts, skills development, and knowledge transfer. 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. For us at OCEL, Lagos State is only the beginning, we look forward to replicating this model nationwide through strategic partnerships across the public and private sectors.”
In addition to this initiative, Nigeria’s indigenous automobile manufacturing company, Innoson Vehicle Manufacturing, IVM, has unveiled its latest innovation, innoson lng/cng gas truck, bus, and cars at its factory in Nnewi, Anambra State.
The liquified natural gas and compressed natural gas-powered vehicles were launched on Tuesday, 20th April 2023, by the president of the Manufacturers Association of Nigeria (MAN), Otunba Francis Meshioye.
The unique feature of the Innoson LNG/CNG Gas vehicles according to the head of corporate communications, IVM, Cornel Osigwe is its ability to make use of CNG which is more affordable than diesel and petrol.
He said, “It’s high time CNG and LNG powered vehicles ply Nigerian roads and IVM remains committed to producing durable, environment-friendly vehicles. This reduces the cost of transportation and encourages sustainability in our environment as well as development.”
In his remark, MAN’s president, Mr. Meshioye said the new vehicles represent great advancement in the manufacturing industry and indeed the pride of Nigeria and Africa.
“It’s a great thing to see what we witness in other parts of the world, in our own home. I encourage the Nigerian government and individuals to patronise Innoson Vehicles as that’s a sure way of partnering with the greatness we saw here today.”
On local manufacturing, the chairman of the south-east directorate, MAN, Lady Ada Chukwudozie, assured manufacturers of an improved environment for production as plans for better electricity in the southeast are ongoing. She encouraged the IVM brand to keep blazing the trail in car manufacturing.
“We are very happy with the factory tour of Innoson Vehicles, He is a trailblazer in car manufacturing in Nigeria, the blacksmith of Africa and our leaders are here to pay homage.”
Members of MAN, BoI, NNDDC, and many other leaders across the manufacturing and oil and gas sector were present at the launch of the Innoson LNG/CNG Truck, Bus, and Cars.
The founder of Innoson Vehicles, Chief Dr. Innocent Chukwuma, referred to CNG vehicles as an idea whose time has come. Adding that the newly-launched vehicles were produced to enhance transportation at a reduced cost.
The serial entrepreneur recalled how BoI has been instrumental in the creation of his industries and in boosting his entrepreneurial capacity.
He also encouraged everyone who wants to join the manufacturing industry to not be deterred from taking that step to produce what can solve problems in society.
“When we started, I started with nothing in terms of investors but I went to the Bank of Industry, did a presentation for them and they accepted to help. Most of the equipment I buy for my factory is from them. As you know, the vehicle manufacturing industry is the industry of all industries. So go ahead and launch that production company. I will buy materials or parts from you once you begin. There is room for more people in the car manufacturing industry.”
The IVM chairman described the new cars as quality vehicles powered by CNG/ LNG and produced as a sustainable alternative to diesel.
Africa’s first vehicle manufacturing company showcased varieties of CNG/LNG automobiles including; Innoson trucks, buses, and cars.
The CNG and LNG buses are part of Innoson Vehicles’ commitment to promoting environmentally friendly transportation in Nigeria. They are designed to reduce carbon emissions and improve air quality while providing a comfortable and safe ride for passengers.
The commissioning of the Innoson Vehicles CNG and LNG buses represents a significant step forward in Nigeria’s efforts to promote local content and innovation in the automotive industry.
The Manufacturers Association of Nigeria (MAN) remains committed to supporting the growth and development of the sector and looks forward to working with Innoson Vehicles and other stakeholders to achieve this goal.
