The Chad-Cameroon pipeline has become a cornerstone of Yaoundé‘s revenue strategy. Between 2020 and 2025, Cameroon’s public treasury collected a total of 222.2 billion Central African CFA francs in transit fees from Chadian crude oil transported to the Kribi maritime terminal. According to the Medium-Term Economic and Budgetary Programming Document (2027-2029) compiled by the Ministry of Finance, this translates to an average annual revenue of 37 billion FCFA per year for allowing the oil to pass through its territory.
Chad, a landlocked nation without direct access to the sea, relies entirely on this infrastructure to export its oil production. The transit fee, calculated per barrel transported, is adjusted periodically through bilateral agreements. The actual yield for Cameroon’s public finances depends on this fee structure, the volume of oil shipped, and the dollar-FCFA exchange rate.
Transit revenues triple in a decade
A decade-long comparison highlights the dramatic increase in transit revenue. Official records from the Pipeline Steering and Monitoring Committee (CPSP) indicate that Cameroon collected 85.5 billion FCFA in transit fees during the first eight years of operations, from 2003 to 2011—an average of about 10.7 billion FCFA annually. The recent six-year period, though shorter, generated 136.7 billion FCFA more than the initial eight years combined.
However, this surge must be interpreted with caution. The pipeline’s revenue depends on multiple variables: the per-barrel fee, the volume of oil transported, and fluctuations in the dollar-FCFA exchange rate. Without a public breakdown of the 222.2 billion FCFA, it remains impossible to determine the exact contribution of each factor to the observed growth.
Successive fee hikes drive revenue growth
The most significant driver of this increase has been the repeated upward adjustments to the transit fee. When the pipeline became operational in October 2003, the fee was set at $0.41 per barrel. It was first raised in 2013, then again in 2018, reaching $1.321 per barrel—a more than threefold increase over 15 years. This alone has mechanically boosted Cameroon’s earnings, regardless of the volume of oil transported.
A new fee revision was scheduled for October 1, 2023, as part of the agreed mechanism between the two countries. However, no updated rate has been disclosed to date. This lack of clarity introduces uncertainty about the future trajectory of transit revenues, particularly as tariff negotiations remain a recurring diplomatic priority for both Yaoundé and N’Djamena.
Careful interpretation of historical data
When examining long-term trends, it is essential to account for differences in accounting methods. COTCO, the operator of Cameroon’s pipeline section, reported approximately 200 billion FCFA in payments to the treasury between 2004 and 2013. However, this figure included income tax and other levies paid by the company—not just the transit fee. As such, it cannot be directly compared to the 222.2 billion FCFA collected between 2020 and 2025, which reflects only the transit fee. The exact share of the transit fee within COTCO’s 200 billion FCFA remains undisclosed, making the 85.5 billion FCFA from the first eight years the most reliable benchmark for comparison.
The current period underscores the pipeline’s financial significance. By 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 underscores the critical role the Chad-Cameroon pipeline plays in Yaoundé’s budget from Chadian oil exports. The upcoming announcement of the new transit fee, long-awaited since October 2023, will be a key factor in projecting revenue trends for the coming years.