OTL 2026: Nigeria’s downstream market now about winning customers, not just fuel availability — Rainoil boss
The Group Executive Chairman of Rainoil Ltd., Dr Gabriel Ogbechie, says Nigeria’s downstream petroleum industry has shifted from concerns about fuel availability to a competitive, buyer-led market where customer choice, supply economics and operational efficiency determine success.
Ogbechie also identified five priorities for marketers seeking to win customers in the evolving market, including improved customer service, accurate measurement, automation, efficient location management and measurable returns on investment.
He made this known in a presentation titled, “Winning the Customer in Nigeria’s Evolving Downstream Petroleum Market”, at the 20th anniversary edition of OTL Africa Downstream Energy Week in Lagos.
The event has the theme, “Secure Energy, Shared Prosperity”.
Providing context for the industry’s transition, Ogbechie said Nigeria’s four state-owned refineries, with a combined capacity of 445,000 barrels per day, operated at an average utilisation rate of only seven per cent in 2020.
He said the removal of petrol subsidy in May 2023 and the commencement of refining operations by Dangote Refinery in 2024 had accelerated the shift from import dependence towards domestic refining and exports.
According to his presentation, refined petroleum product exports reached approximately 55 million litres per day in the second quarter of 2026, while imports fell below 20 million litres per day.
He added that refined product export earnings rose by 148 per cent year-on-year to 3.94 billion dollars, while Dangote Refinery accounted for 71 per cent of domestic Premium Motor Spirit (PMS) receipts in August 2026.
Ogbechie, however, noted that the industry’s challenge had shifted from product availability to affordability and competition for customers.
He said PMS remained Nigeria’s dominant tracked fuel, accounting for 72 per cent of combined fuel consumption, while daily consumption declined from 60.2 million litres in January 2026 to 41.5 million litres in August.
According to him, marketers must respond to the changing market by strengthening customer service, ensuring accurate measurement and embracing automation.
On customer service, Ogbechie said marketers must compete on value rather than price alone, noting that customer experience had become essential for protecting profit margins and building loyalty in a buyer-led market.
Citing the 2025 report of the National Association of Convenience Stores (NACS), he said 55.9 per cent of downstream industry respondents identified seamless customer experience as a major challenge.
He identified speed and reliability, convenience and choice, and consistency across retail networks as key areas for improvement.
He said marketers should ensure transparent pricing, reliable dispensing equipment, minimal downtime, dependable opening hours and reduced stock-outs.
He also advocated cashless payments, fuel cards, loyalty rewards, digital receipts and relevant non-fuel offerings, including lubricants and convenience retail.
According to him, consistent service standards, empowered attendants, prompt complaint resolution and dealer incentives linked to customer satisfaction would further strengthen customer loyalty.
“Move the discussion beyond courtesy at the pump. Customers may come for the price, but they return for reliability, convenience and trust,” he said.
Ogbechie cited Rainoil’s zero-stock-out policy across its retail outlets, standardised station appearance, annual customer satisfaction surveys and Customer Service Week celebrations as examples of its customer-focused initiatives.
On accurate measurement, he said every litre dispensed must be accounted for to protect consumers, marketers and the integrity of the market.
He cited the NACS 2025 report as indicating that 59 per cent of downstream industry respondents reported fuel variances exceeding one per cent of sales.
He called for investment in verified dispensing equipment, regular calibration, stock reconciliation, documented custody transfers and controls to identify unusual losses.
He added that digital records could make discrepancies traceable and easier to address, while regulators should establish clear standards, conduct risk-based inspections and ensure consistent enforcement.
“Every litre is a promise. Measurement integrity is how the industry keeps that promise,” he said.
Ogbechie said Rainoil maintained routine tank calibration and maintenance, alongside daily sales and stock reconciliation, to strengthen measurement accuracy.
On automation, he said technology should transform operations, improve service delivery and protect value rather than merely digitise existing processes.
He identified six priorities: automating forecourt operations, eliminating transit losses, introducing automated inventory and wet-stock management, improving logistics and replenishment, enhancing digital customer experience, and using artificial intelligence for demand forecasting and pricing analysis.
He said these measures could include forecourt controllers, electronic pump monitoring, automatic tank gauging, real-time stock visibility, GPS-enabled delivery tracking, electronic proof of delivery and customer relationship management systems.
He added that AI-supported forecasting and pricing analysis should be based on reliable data and appropriate human oversight.
Ogbechie cited Rainoil’s use of forecourt controllers, electronic pumps for real-time sales monitoring and price setting, and fleet management systems for logistics monitoring and control.
He explained that the three pillars were interconnected, with customer service establishing clear commitments, accurate measurement verifying delivered quantities, and automation supporting replenishment, delivery tracking and the identification of operational exceptions.
On regulation, he urged authorities to protect consumers, establish clear rules and enforce compliance while allowing efficient operators to innovate, invest and compete.
“The competitive advantage will not necessarily go to the marketer with the most stations, the most expensive technology or the lowest advertised price. It will go to those that combine scale with disciplined execution, customer understanding and cost efficiency,” he said.
Summarising the priorities for marketers, Ogbechie called for customer service to become a key leadership performance indicator, measurement integrity to be institutionalised, high-value processes to be automated first, the economics of every location to be managed efficiently, and investments to be assessed against measurable returns.
“The future of downstream marketing is not just about moving more litres. It is about creating more value from every litre,” he said.
