Cameroon’s transit revenue from Chad’s crude oil transported via the Chad-Cameroon pipeline reached 12.2 billion FCFA in the first four months of 2026. According to the Pipeline Steering and Monitoring Committee (CPSP), this marks a 1.2 billion FCFA increase year-on-year, representing an 11% rise compared to the same period in 2025. The milestone reflects a cumulative volume of 16.1 million barrels of Chadian crude transported through Cameroonian territory during the review period.
Critical energy lifeline for landlocked Chad
Stretching 1,080 kilometers, this pipeline connects Chad’s southern oil fields to the Komé-Kribi export terminal on Cameroon’s coastline. With no direct access to the sea, N’Djamena relies entirely on this artery to move its production to global markets. Commissioned in the early 2000s under a consortium originally led by ExxonMobil, the pipeline remains Chad’s only viable export corridor.
For Cameroon, this geographic necessity translates into steady budgetary inflows. Each barrel passing through its territory generates a transit fee of 1.321 dollars, credited to the national treasury. While the mechanism appears straightforward, its cumulative impact significantly boosts non-tax revenues, particularly as Yaoundé seeks to diversify income amid declining domestic hydrocarbon production.
Transit fees triple over two decades
The current fee structure stems from negotiations initiated in 2013. Initially set at 0.41 dollars per barrel, the rate was deemed insufficient by Cameroonian authorities given the environmental and logistical risks borne by the transit country. Under pressure from Yaoundé, a five-year review cycle was established, leading to two successive adjustments in 2013 and 2018 that ultimately tripled the transit fee.
This upward trajectory has gradually aligned Cameroon’s transit conditions with standards seen in other African oil corridors, such as the BTC system in Central Asia or neighboring Chad-Cameroon pipeline arrangements. However, the anticipated next adjustment has yet to materialize.
2023 fee hike remains pending
As per the agreed schedule, a new increase should have taken effect on October 1, 2023. Over two years later, no official announcement has confirmed the completion of discussions or an impending tariff adjustment. The prolonged silence surrounding this issue raises questions, especially as Cameroonian authorities have recently emphasized optimizing oil revenues.
Multiple factors may explain this stalemate. Chad’s political transition following President Déby’s departure and N’Djamena’s budgetary constraints have limited negotiators’ maneuverability. Additionally, fluctuations in Chad’s oil production—with some fields in decline—may prompt operators to advocate for tariff stability to maintain profitability. Conversely, Cameroon faces the opposite challenge: maximizing returns from an infrastructure with a finite lifespan.
Despite the uncertainty, the current arrangement continues to bolster state coffers. If the first four months’ performance persists, annual transit revenues could exceed 35 billion FCFA in 2026. This would solidify the Chad-Cameroon pipeline’s role as a key foreign exchange generator for Yaoundé, alongside Kribi’s gas sector and agricultural exports. No official updates have yet emerged regarding ongoing tariff negotiations with Chad.
