ARTIFICIAL INTELLIGENCE ADOPTION IN NIGERIA'S OIL AND GAS INDUSTRY: CHALLENGES, OPPORTUNITIES, AND IMPACT ON OPERATIONAL EFFICIENCY

Abstract

This study investigated the adoption of Artificial Intelligence (AI) in Nigeria’s oil and gas industry, focusing on its challenges, opportunities, and impact on operational efficiency. A descriptive survey research design was employed, targeting employees, managers, and technical personnel across upstream, midstream, and downstream operations. A sample of 334 respondents was selected using stratified random sampling. Data were collected through a structured questionnaire and analyzed using descriptive and inferential statistics. The findings revealed that AI adoption is ongoing but partial, with predictive maintenance, automation, and monitoring being the most utilized applications. Major challenges identified include shortage of skilled personnel, inadequate digital infrastructure, high implementation costs, regulatory gaps, and cybersecurity concerns. Respondents also reported significant opportunities associated with AI, including improved operational efficiency, enhanced decision-making, cost reduction, safety management, and workforce development. Overall, AI adoption was found to positively impact operational efficiency, although full integration remains limited. The study recommends investment in digital infrastructure, workforce training, supportive policies, strategic AI deployment, and collaboration with technology partners to maximize the benefits of AI adoption.