The transit fee collected by Cameroon on Chadian oil transported via the Chad-Cameroon pipeline reached 12.2 billion FCFA by the end of the first four months of 2026. This figure, released by the Pipeline Steering and Monitoring Committee (CPSP), represents an annual increase of 1.2 billion FCFA, marking an 11% rise compared to the same period in 2025. This growth is driven by a cumulative volume of 16.1 million barrels of Chadian crude transported through Cameroonian territory during the period.
The backbone of Chad’s energy isolation
Stretching 1,080 kilometers, the Chad-Cameroon pipeline connects the oil fields in 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 artery to move its production to global markets. Since its commissioning in the early 2000s under a consortium led initially by ExxonMobil, the pipeline remains the only viable export route for Chadian crude oil.
For Cameroon, this geographical dependency translates into recurring budgetary inflows. Each barrel transiting its territory incurs a transit fee of $1.321, deposited into the national treasury. While the mechanism is straightforward, its cumulative impact strengthens non-tax revenues in a context where Yaoundé is diversifying income sources amid a declining trend in its own hydrocarbon production.
Tariff triples over two decades of negotiations
The current fee stems from a series of negotiations initiated in 2013. Initially set at $0.41 per barrel—a rate considered insufficient by Cameroonian authorities given the environmental and logistical risks borne by the transit country—the tariff has since been revised twice, in 2013 and 2018, pushing it to its current level.
In just fifteen years, the unit rents have more than tripled. This upward trend has gradually aligned Cameroon’s transit financial conditions with benchmarks seen in 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 adjustment remains pending.
2023 tariff review still pending after two years
As per the agreed timeline, a new increase was expected to take effect on October 1, 2023. Over two years later, no official statement has confirmed the conclusion of negotiations or the implementation of a revised fee. The prolonged silence raises questions, especially as Cameroonian authorities have recently emphasized efforts to optimize oil revenues.
Several factors may explain this stalemate. Chad’s political transition following former President Déby’s tenure and N’Djamena’s budgetary constraints may limit negotiators’ maneuverability. Additionally, fluctuations in Chadian oil production could prompt operators to advocate for tariff stability to sustain the profitability of declining fields. In contrast, Cameroon’s priority is to maximize revenue from an infrastructure with a finite lifespan.
Nevertheless, the current dynamic continues to bolster state coffers. If the first four-month trend persists, annual transit fee revenues could exceed 35 billion FCFA in 2026. This would further cement the Chad-Cameroon pipeline’s role as a strategic foreign exchange generator for Yaoundé, alongside Kribi’s gas and agricultural exports. No official updates have emerged regarding the ongoing tariff negotiations with Chad.
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