The transit duty collected by Cameroon on Chadian crude oil transported via the Chad-Cameroon pipeline reached 12.2 billion Central African CFA francs by the end of the first four months of 2026. This figure, released by the Pipeline Steering and Monitoring Committee (CPSP), marks a year-on-year increase of 1.2 billion CFA francs, representing an 11% rise compared to the same period in 2025. This growth is attributed to a cumulative volume of 16.1 million barrels of Chadian crude transported through Cameroonian territory during the period.

Essential infrastructure for Chad’s energy isolation

Stretching 1,080 kilometers, the pipeline connects the oil fields in southern Chad 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 channel its production into global markets. In operation since the early 2000s under a consortium originally led by ExxonMobil, the pipeline remains Chad’s sole viable export route for its crude oil.

For Cameroon, this geographical dependency translates into a steady revenue stream. Each barrel passing through its territory generates a transit fee of $1.321, deposited into the national treasury. While the mechanism is straightforward, its cumulative impact strengthens non-tax revenues for the country, especially as Yaoundé seeks to diversify income sources amid a downward trend in its own hydrocarbon production.

Transit fees triple in two decades

The current rate is the result of a series of negotiations initiated in 2013. Initially set at $0.41 per barrel, the tariff was deemed insufficient by Cameroonian authorities, considering the environmental and logistical risks borne by the transit country. Under pressure from Yaoundé, a five-year review mechanism was established, leading to two successive upward adjustments in 2013 and 2018 that brought the fee to its present level.

In concrete terms, the per-barrel revenue has more than tripled over the past fifteen years. This upward trend has enabled Cameroon to align its transit financial terms with those observed in other African oil corridors, such as the BTC system in Central Asia or the arrangements governing the neighboring Chad-Cameroon pipeline operated by COTCO. However, the next phase of this indexation remains pending.

2023 fee revision still pending

According to the agreed timeline, a new increase should have taken effect on October 1, 2023. Over two years later, no official statement has confirmed the conclusion of negotiations or the adoption of a revised rate. The prolonged silence surrounding this issue raises questions, particularly as Cameroonian authorities have recently intensified efforts to enhance oil revenue optimization.

Multiple factors may explain this deadlock. Chad’s political transition following President Déby’s tenure and N’Djamena’s budgetary constraints have narrowed the negotiating margin for Chadian officials. Additionally, fluctuations in Chad’s oil production could push operators to advocate for tariff stability to safeguard the profitability of declining fields. Conversely, Cameroon’s priority is to maximize revenue from an infrastructure with a finite operational lifespan.

Nevertheless, the current dynamics undeniably benefit the state budget. If the first-quarter trend persists, annual transit fee revenues could surpass 35 billion Central African CFA francs by 2026. This would further cement the Chad-Cameroon pipeline’s role as a strategic foreign exchange generator for Yaoundé, alongside Kribi’s gas exports and agricultural shipments.