Toad is not executing statements as sqlplus.
Either connect thru sqlplus - you have it in your local ORACLE_HOME/bin or research how to get Toad to exec statements as sqlplus.
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Pablo (Paul) Berzukov
Author of Understanding Database Administration available at Amazon and other bookstores.
Disclaimer: Advice is provided to the best of my knowledge but no implicit or explicit warranties are provided. Since the advisor explicitly encourages testing any and all suggestions on a test non-production environment advisor should not held liable or responsible for any actions taken based on the given advice.