The Chad-Cameroon pipeline has become a cornerstone of revenue for Cameroon, with the Treasury collecting 222.2 billion FCFA in transit fees from Chadian crude oil transported to the Kribi maritime terminal between 2020 and 2025. This figure, outlined in the Medium-Term Economic and Budgetary Programming Document 2027-2029, translates to an average annual yield of 37 billion FCFA per year for Cameroon’s public finances.
For landlocked Chad, which relies entirely on this infrastructure to export its oil, the transit fee is calculated per barrel transported, with rates adjusted periodically between the two nations. The revenue generated depends on the transported volume, the dollar-FCFA exchange rate, and the tariff structure in place at any given time.
Transit earnings surge over 300% in a decade
A decade ago, Cameroon’s transit revenue was a fraction of today’s figures. Official data from the Pipeline Steering and Monitoring Committee (CPSP) shows that between 2003 and 2011—following the pipeline’s commissioning on October 3, 2003—the country collected 85.5 billion FCFA in transit fees. The average annual yield during this period was just 10.7 billion FCFA, compared to today’s 37 billion. Even with a shorter timeframe, the recent six-year earnings exceed the first eight years by 136.7 billion FCFA.
However, this sharp increase cannot be attributed to a single factor. The pipeline’s profitability is influenced by multiple variables, including the per-barrel transit rate, total transported volumes, and exchange rate fluctuations. Without a detailed annual breakdown of the 222.2 billion FCFA, isolating the precise contribution of each variable remains challenging.
Successive tariff hikes fuel revenue growth
The steady rise in transit tariffs has been a major driver of Cameroon’s increasing earnings. When the pipeline became operational, the rate stood at 0.41 USD per barrel. It was revised upward in 2013 and again in 2018, reaching 1.321 USD per barrel—more than tripling in fifteen years. This adjustment has significantly boosted Cameroon’s transit revenue, even when accounting for variations in transported volumes.
A further tariff review was scheduled for October 1, 2023, as per the agreed mechanism between both countries. However, no new rate has been publicly disclosed to date. This uncertainty casts doubt on the future trajectory of transit fees, especially as tariff negotiations remain a recurring diplomatic topic between Yaoundé and N’Djamena.
Comparing past and present figures requires caution
Historical comparisons must account for differing accounting methods. Between 2004 and 2013, COTCO, the operator of Cameroon’s pipeline section, reported approximately 200 billion FCFA in payments to the Treasury. This sum included not only transit fees but also income taxes and other levies paid by the company. As such, it cannot be directly compared to the 222.2 billion FCFA recorded from 2020 to 2025, which exclusively covers transit duties. The exact breakdown of transit fees within COTCO’s 200 billion FCFA figure was never disclosed, making the 85.5 billion FCFA from the first eight years the most reliable reference point for comparison.
The current fiscal year further underscores the pipeline’s financial significance. By the end of May 2026, Cameroon had already collected 15.1 billion FCFA in transit fees, according to CPSP data. While this figure does not predict the year-end total, it highlights the heavy dependence of Yaoundé’s budget on transit revenue from Chadian crude oil exports. The anticipated announcement of a new tariff, expected since October 2023, remains a critical factor in forecasting future earnings.
