Lagos has long been known for its traffic jams and the never-ending chorus of car horns. The 3,518 square kilometres megalopolis of almost 16 million people comes with a lot of cars, buses, and motorcycles on the road, and it’s not uncommon for a short journey that should take 30 minutes to turn into a three-hour ordeal. Despite the city being an economic powerhouse for Africa, it has not lived up to expectations of providing efficient and reliable road transport systems for its citizens.
But in recent times Lagos has been pursuing sustainable transport options as part of its efforts to reduce the city’s carbon footprint and improve the quality of life for Lagosians. One of the measures put in place is the Lagos Sustainable Transport Initiative (STI), a plan developed by the Lagos State Government to create a more sustainable transport system in Lagos. The plan includes a range of initiatives, such as introducing electric buses, expanding the city’s rail network, and developing cycling infrastructure.
With respect to the introduction of electric buses, Lagos has taken a leap towards sustainable transportation with the introduction of its first set of electric buses. In partnership with Oando Clean Energy Limited (OCEL) and China’s bus builders Yutong, Lagos is expected to deploy over 12,000 electric buses over the next seven years which will generate about $2.6 billion in estimated economic cost savings and create about 3,000 jobs for drivers and 2,000 opportunities for other support staff. This is all part of its goal to support Nigeria in meeting its target of net zero emissions by 2060.
But not everything that meets the eye is good, and dare I say that one aspect of the greenwashing schemes big oil giants like Oando participate in is the tokenist environmental initiatives they promote as a guise to continue business as usual. For all it’s worth there’s every possibility that this is a tokenist move for an eco-positive appraisal. It’s not far-fetched news for big oil companies to issue green bonds that would create a perception that the company is actively addressing environmental concerns, when in reality, the majority of their operations and revenue generation may still come from fossil fuels.
Asides from this possibility, there are still many obscurities with this partnership that raises the eyebrows of experts who see beyond the lines. Astutely put by Mr Funso Doherty, the transparency around this partnership is really low given the project’s intended magnitude, public significance, prospective cost, and potential effects. This dark spot breeds the opportunity of unaccountability to the public, which is very dishonest to the public who will not be able to hold both the public and private entities accountable for their actions when things do not go as planned.
Mr Funsho raised several cogent issues that disqualified Oando as a possible choice in this partnership. He mentioned that Oando recorded significant losses for both 2020 and 2019 of N140 billion and N207 billion, respectively, in its most recently published (2020) audited statements filed with the Stock Exchange. As of December 2020, it recorded a negative net liability of N67 billion and a current liability-to-asset ratio of N578 billion.
In the practicality of this plan, although the introduction of these electric buses might be a start in the right direction towards developing a more sustainable transportation system in Lagos, it should be emphasised that this is not a complete answer to Lagos’ poor transport system and sustainability plans.
A comprehensive strategy is needed to effectively address Lagos’ transport problems. This entails the assessment of the general condition of the roads as well as taking into account external factors that could provide obstacles to the effectiveness of the transportation system. Avoiding concentrating development in selected locations is essential, as it makes sure that the advantages of better transport are felt throughout the entire city.
We also need to consider the cost of maintaining electric buses may be prohibitively expensive, as maintaining these buses can be challenging due to their unique components, operating requirements and specialised maintenance. This will require significant investment in equipment and training for maintenance technicians.
Going forward it is essential to keep an eye out for any potential greenwashing tactics that some major oil companies, like Oando, may use. While also demanding transparency around further partnerships as the lack of transparency surrounding this partnership has raised concerns about the accountability and the true environmental intentions behind such initiatives. The problems brought up by experts like Mr Funso Doherty underscore the need for increased openness, particularly in light of Oando’s unstable financial situation.