The transit fee collected by Cameroon on Chadian crude transported via the Chad-Cameroon pipeline reached 12.2 billion FCFA in the first four months of 2026, the Pipeline Steering and Monitoring Committee (CPSP) announced. This represents an increase of 1.2 billion FCFA year-on-year, marking an 11% rise compared to the same period in 2025. The revenue surge stems from a total volume of 16.1 million barrels of Chadian crude transported through Cameroon during this period.
The pipeline: a lifeline for Chad’s energy isolation
Stretching 1,080 kilometers, this critical infrastructure connects the oil fields of southern Chad to the Komé-Kribi export terminal on Cameroon’s coast. With no direct access to the sea, N’Djamena relies entirely on this pipeline to ship its oil to global markets. Operational since the early 2000s under a consortium originally led by ExxonMobil, the pipeline remains Chad’s sole viable export corridor. For Cameroon, this geographical dependence translates into steady fiscal inflows. Each barrel crossing its territory generates a transit fee of $1.321, deposited into the national treasury. While the mechanism is straightforward, its cumulative impact bolsters Cameroon’s non-tax revenues, particularly as Yaoundé seeks to diversify income amid a declining domestic hydrocarbon production.
Transit fees tripled in two decades
The current fee is the result of a decade-long negotiation process initiated in 2013. Initially set at $0.41 per barrel—a rate deemed inadequate by Cameroon given the environmental and logistical risks assumed by the transit country—the tariff underwent two revisions in 2013 and 2018. These adjustments more than tripled the unit rent over fifteen years, aligning Cameroon’s transit conditions with those of other African oil corridors, such as the BTC system in Central Asia or similar arrangements in neighboring Chad-Cameroon pipelines like COTCO. However, the next scheduled increase has yet to materialize.
2023 fee hike still pending
A new tariff was expected to take effect on October 1, 2023, following the agreed five-year review cycle. Yet, over two years later, no official announcement has confirmed the conclusion of discussions or an updated fee structure. This prolonged uncertainty raises questions, especially as Cameroon has recently emphasized optimizing oil revenues. Several factors may explain the delay. Chad’s political transition following former President Déby’s tenure and N’Djamena’s budgetary constraints may have limited negotiators’ flexibility. Meanwhile, fluctuations in Chad’s oil production could prompt operators to advocate for tariff stability to sustain profitability in declining fields. Conversely, Cameroon seeks to maximize returns from an infrastructure with a finite operational lifespan.
Under the current pace, annual transit fee revenues could surpass 35 billion FCFA in 2026 if first-quarter trends hold. This would solidify the Chad-Cameroon pipeline’s role as a strategic foreign exchange generator for Yaoundé, alongside Kribi’s gas and agricultural exports. As of now, no official update has been released regarding ongoing negotiations with Chad on tariff adjustments.
