Rainoil Group Executive Chairman, Dr Gabriel Ogbechie, says Nigeria’s downstream petroleum industry is shifting from a market defined by fuel availability to one driven by customer choice, operational efficiency, pricing and service quality.

Nigeria’s downstream petroleum marketers must prioritise customer service, accurate fuel measurement, automation, location-level cost management and measurable returns on investment to remain competitive in the evolving market, Group Executive Chairman of Rainoil Limited, Dr Gabriel Ogbechie, has said.

Ogbechie made the recommendations while delivering 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, held under the theme, “Secure Energy, Shared Prosperity.”

He said the industry was undergoing a structural transition as domestic refining expanded, import dependence declined and competition increasingly shifted towards affordability, customer experience and the economics of retail operations.

According to Ogbechie, Nigeria’s four state-owned refineries, with a combined nameplate capacity of 445,000 barrels per day, operated at an average utilisation rate of just 7 per cent in 2020.

The landscape began to change following the removal of petrol subsidies in May 2023 and the commencement of refining operations by the Dangote Petroleum Refinery in 2024.

He said the transition had repositioned Nigeria from a market heavily dependent on imported refined products towards greater domestic supply and export opportunities.

Figures presented at the conference indicated that 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.

Export earnings from refined products reportedly rose by 148 per cent year-on-year to $3.94 billion, while the Dangote refinery accounted for 71 per cent of domestic premium motor spirit (PMS) receipts in August 2026.

However, Ogbechie noted that increased domestic supply had not eliminated affordability challenges for consumers.

Petrol remained Nigeria’s dominant tracked transport fuel, accounting for 72 per cent of combined fuel consumption, according to the presentation. Daily PMS consumption also declined from 60.2 million litres in January 2026 to 41.5 million litres in August.

The figures, he argued, underscore the need for marketers to rethink their business models as customers become more sensitive to prices, purchasing power and the value delivered at filling stations.

Customer service becomes a competitive advantage

Ogbechie identified customer service, accurate measurement and automation as three operational levers that can help marketers differentiate themselves in an increasingly competitive market.

He said customer experience was becoming a critical source of customer loyalty and margin protection in a buyer-led market where consumers could compare prices and switch suppliers more readily.

Citing the 2025 report of the US-based 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 highlighted three priorities for improving customer service: speed and reliability, convenience and choice, and consistent service standards across retail networks.

These include transparent pricing, dependable pump operations, reduced downtime, reliable opening hours, fewer stock-outs, cashless payment options, fuel cards, loyalty programmes and digital receipts.

He also urged marketers to expand relevant non-fuel offerings, including lubricants and convenience retail, while ensuring that attendants are adequately empowered to resolve complaints promptly.

“Move the discussion beyond courtesy at the pump. Customers may come for the price, but they return for reliability, convenience and trust,” Ogbechie said.

As examples of Rainoil’s approach, he cited a zero-stock-out policy across its retail outlets, efforts to maintain consistent station standards, annual customer satisfaction surveys and Customer Service Week activities.

Accurate fuel measurement critical to consumer trust

The Rainoil chairman identified measurement integrity as another essential requirement for building customer confidence and protecting the reputation of the downstream market.

“Every litre must be right — for the customer, the marketer and the integrity of the market,” he said.

Ogbechie 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 on marketers to invest in verified dispensing equipment, regular calibration, tank maintenance, stock reconciliation, documented custody transfers and controls capable of detecting unusual product losses.

He said digital record-keeping could make discrepancies easier to trace, investigate and resolve, thereby reducing avoidable losses and strengthening accountability across the supply chain.

He also urged regulators to establish clear measurement standards, adopt risk-based inspections and enforce compliance consistently across the market.

“Every litre is a promise. Measurement integrity is how the industry keeps that promise,” he said.

Rainoil’s measures in this area, according to Ogbechie, include routine tank calibration and maintenance, alongside daily sales and stock reconciliation.

Automation to improve efficiency and reduce losses

Ogbechie said automation could help petroleum marketers translate service commitments and measurement controls into consistent performance across multiple locations.

He argued that technology investments should go beyond digitising existing processes to redesigning operations, improving customer service and protecting commercial value.

He outlined six priorities for automation: forecourt operations, transit-loss prevention, inventory management, logistics and replenishment, digital customer engagement, and artificial intelligence-supported demand forecasting and pricing analysis.

Under this approach, marketers would deploy technology at dispensing points, improve monitoring of product movements, use automated tank gauging to obtain real-time inventory information and track deliveries through GPS-enabled systems and electronic proof of delivery.

He also advocated the use of customer relationship management platforms for targeted offers and AI tools for demand forecasting and pricing analysis, subject to reliable data and appropriate human oversight.

Ogbechie cited Rainoil’s deployment of forecourt controllers and electronic pump systems for real-time sales monitoring and price setting, as well as fleet management technology for logistics monitoring and control.

He explained that integrating customer service, accurate measurement and automation would enable marketers to establish clear service standards, verify delivered volumes, reconcile inventory and anticipate replenishment needs.

Such integration, he said, could also generate alerts when unusual losses, delivery discrepancies or operational failures occur.

Five priorities for downstream marketers

Beyond the three operational pillars, Ogbechie outlined five strategic priorities for companies seeking to win customers and improve profitability in Nigeria’s changing petroleum market.

The priorities are to make customer service a key performance indicator for leadership; institutionalise measurement integrity; automate high-value processes first; manage the economics of every retail location; and demand measurable returns on investment, supported by clear baselines, targets and accountable managers.

He said the approach would require marketers to assess not only sales volumes but also operating costs, customer retention, stock losses, station productivity and the returns generated by technology investments.

For an industry facing changing consumption patterns and greater competition, he argued, expanding the number of outlets or competing solely on pump prices would not guarantee sustainable growth.

Regulation must protect consumers and encourage investment

Ogbechie also called for a regulatory framework that protects consumers and ensures compliance without unnecessarily restricting innovation or private investment.

“We should set clear rules, protect consumers and enforce compliance, while allowing efficient operators the freedom to innovate, invest and compete,” he said.

He maintained that the strongest businesses would be those able to combine operational scale with disciplined execution, a clear understanding of customer needs and efficient cost management.

“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.

Summing up his position, Ogbechie said the future of downstream petroleum marketing would depend less on moving larger volumes of fuel and more on extracting sustainable value from every litre sold.

“The future of downstream marketing is not just about moving more litres. It is about creating more value from every litre,” he said.