The Nigerian National Petroleum Company Limited (NNPCL) is intensifying plans to deploy artificial intelligence (AI) and digital technologies to reduce production costs and improve efficiency in its upstream operations.
The company says the move is part of a broader strategy to modernise Nigeria’s oil and gas sector, enhance productivity, and strengthen competitiveness in the global energy market.
According to senior executives, digital transformation has become essential for survival in the industry as companies face rising operational costs and efficiency pressures.
“It is no longer a ‘nice-to-have’; it is an absolute necessity.”
-NNPCL representative, Udobong Ntia
He added that failing to embrace digital technologies such as AI could significantly increase production inefficiencies and weaken Nigeria’s position in the global oil market.
“If we don’t do it, we’re going to be buried, frankly. It is no longer a nice-to-have; it is an absolute necessity and of utmost importance.”-Ntia added
The company also highlighted the importance of data utilisation in its operations, noting that large volumes of previously digitised information remain underutilised.
“We have spent a lot of money digitising our data, but if we don’t mine it, we will lose one of the most critical variables in the oil industry-data.”
-NNPCL representative disclosed.
Industry stakeholders say Nigeria’s oil production costs remain among the highest globally, making efficiency gains through technology increasingly important.
Analysts argue that AI adoption could help improve predictive maintenance, reduce equipment downtime, enhance reservoir management, and optimise production planning.
NNPCL’s digital push aligns with ongoing efforts to increase national crude output and achieve long-term production targets through improved efficiency, investment inflows, and operational reforms.
Senior AI Writer
Bio: Okikiola is a writer and AI enthusiast with a background in Office Technology and Management from the Federal Polytechnic Offa. She went further to study an MSc in International Business at De Montfort University (DMU). With extensive work experience across administrative and business roles, she now focuses on exploring how artificial intelligence can transform work, innovation, and everyday life.