Cameroon’s earnings from transit fees on Chadian crude oil transported via the Chad-Cameroon pipeline reached 12.2 billion FCFA in the first four months of 2026. The figure, confirmed by the Pipeline Steering and Monitoring Committee (CPSP), marks a year-on-year increase of 1.2 billion FCFA, representing an 11% rise compared to the same period in 2025. This growth is attributed to the transportation of 16.1 million barrels of Chadian crude through Cameroonian territory during the review period.
Critical infrastructure bridging Chad’s energy isolation
The 1,080-kilometer pipeline connects Chad’s southern oil fields to the Komé-Kribi export terminal on Cameroon’s coastline. Without direct access to the sea, N’Djamena relies entirely on this artery to ship its crude to global markets. Commissioned in the early 2000s under a consortium led by ExxonMobil, the pipeline remains Chad’s sole viable export corridor today.
For Cameroon, this geographical dependence translates into a steady revenue stream. Each barrel transiting its territory triggers a fixed transit fee of $1.321, deposited into the national treasury. While the mechanism is straightforward, its cumulative impact bolsters non-tax revenues—a critical lifeline for Yaoundé, which is actively diversifying income sources amid a steady decline in its own hydrocarbon production.
Transit fees tripled over two decades through strategic negotiations
The current fee structure stems from a series of negotiations initiated in 2013. Initially set at $0.41 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 clause was introduced, leading to successive upward revisions in 2013 and 2018 that ultimately tripled the fee.
This upward trajectory has aligned Cameroon’s transit revenues with benchmarks in other African oil corridors, such as the BTC system in Central Asia or neighboring Chad-Cameroon Petroleum Company (COTCO) arrangements. However, the next scheduled adjustment remains pending.
2023 fee hike still pending amid stalled negotiations
A new fee increase was expected to take effect on October 1, 2023, yet over two years later, no official announcement has confirmed its implementation. The prolonged silence raises questions, especially as Cameroonian authorities have recently emphasized optimizing petroleum revenues.
Multiple factors contribute to this deadlock. Chad’s political transition following President Déby’s tenure and N’Djamena’s budgetary constraints may limit its negotiators’ flexibility. Additionally, fluctuations in Chad’s oil production could prompt operators to advocate for tariff stability to safeguard the profitability of declining fields. Conversely, Cameroon seeks to maximize revenue from an infrastructure with a finite operational lifespan.
Despite the uncertainty, the pipeline continues to deliver substantial fiscal benefits. If the first-quarter trend persists, annual transit revenues could surpass 35 billion FCFA in 2026. This would cement the Chad-Cameroon pipeline’s role as a key foreign exchange generator for Yaoundé, alongside Kribi’s gas projects and agricultural exports. No official updates on the ongoing fee negotiations with Chad have been released.
