The transit fee collected by Cameroon for transporting Chadian oil through the Chad-Cameroon pipeline reached 12.2 billion Central African CFA francs during the first four months of 2026. According to the Pipeline Steering and Monitoring Committee (CPSP), this represents an increase of 1.2 billion FCFA compared to the same period in 2025, marking an 11% year-on-year rise. The revenue surge stems from the transport of 16.1 million barrels of Chadian crude across Cameroonian territory during the period.
The pipeline: a lifeline for Chad’s energy isolation
Stretching 1,080 kilometers, the pipeline connects the oil fields in southern Chad to the export terminal at Komé-Kribi on Cameroon’s coastline. With no direct access to maritime trade routes, Chad relies entirely on this conduit to ship its oil to global markets. Commissioned in the early 2000s under a consortium led initially by ExxonMobil, the pipeline remains Chad’s sole viable export route for its crude.
For Cameroon, this geographical dependence translates into consistent budgetary inflows. Each barrel transiting its territory generates a fixed transit fee of $1.321, deposited into the national treasury. While straightforward in execution, the cumulative impact of these fees bolsters Cameroon’s non-tax revenue streams, especially as Yaoundé seeks to offset the steady decline in its domestic hydrocarbon production.
Transit fees tripled over two decades
The current fee structure results from a series of renegotiations that began in 2013. Initially set at $0.41 per barrel, the fee was deemed inadequate by Cameroonian authorities given the environmental and logistical risks the country bears as the transit nation. Under sustained pressure from Yaoundé, a five-year review mechanism was established, leading to two successive increases in 2013 and 2018 that brought the fee to its present level.
In practice, the per-barrel transit fee has more than tripled over 15 years. This upward trend has gradually aligned Cameroon’s transit financial terms with those of other African oil corridors, such as the BTC system in Central Asia or the arrangements governing the neighboring Chad-Cameroon-COTCO pipeline. Yet the next scheduled fee adjustment remains pending.
2023 fee review still unresolved
As per the agreed timeline between the parties, a new increase was expected to take effect on October 1, 2023. More than two years later, no official announcement has confirmed the conclusion of negotiations or the implementation of a revised fee. The prolonged silence raises questions, particularly as Cameroonian authorities have recently intensified efforts to enhance oil revenue collection.
Multiple factors may explain the delay. Chad’s political transition following President Déby’s departure and N’Djamena’s budgetary constraints have narrowed the negotiating space for Chadian representatives. Meanwhile, fluctuations in Chad’s oil production—with fields showing signs of decline—may prompt operators to advocate for rate stability to safeguard profitability. Conversely, Cameroon’s priority is to maximize revenue from an infrastructure whose operational lifespan is inherently limited.
Despite the uncertainty, the current fee structure continues to benefit Cameroon’s national budget. If first-quarter trends hold, annual transit revenue could exceed 35 billion FCFA in 2026. This would solidify the pipeline’s status as a strategic foreign exchange earner for Yaoundé, alongside Kribi’s liquefied natural gas exports and agricultural shipments. No official updates have been released regarding the ongoing tariff negotiations with Chad.
