Chad-Cameroon pipeline: Yaoundé’s transit revenue soars to 222 billion FCFA in six years

The Chad-Cameroon pipeline has solidified its position as a fundamental financial pillar for Yaoundé. Over the period spanning 2020 to 2025, the Cameroonian public treasury registered an impressive 222.2 billion FCFA from transit fees levied on Chadian crude oil transported to the Kribi maritime terminal. This significant figure is detailed within the Medium-Term Economic and Budgetary Programming Document for 2027-2029, compiled by the Ministry of Finance. When averaged across the six fiscal years covered, this represents an annual royalty payment of approximately 37 billion FCFA, collected in exchange for the passage of crude oil through Cameroonian territory.

As a landlocked nation, Chad is entirely reliant on this critical infrastructure to facilitate the export of its oil production. The transit fee collected by Cameroon is calculated per barrel transported, based on a tariff that is periodically reviewed and agreed upon by both parties. This mechanism, combined with the volumes of oil transported and the prevailing dollar-FCFA exchange rate, ultimately dictates the pipeline’s effective financial contribution to Cameroon’s public finances.

Revenue surges 3.5-fold in a decade

A comparison with the pipeline’s initial decade of operation strikingly illustrates the scale of this financial growth. Data from the Pipeline Steering and Monitoring Committee (CPSP) indicates that Cameroon had accumulated 85.5 billion FCFA in transit rights during the eight years following the pipeline’s commissioning on October 3, 2003. At that time, the annual average stood at roughly 10.7 billion FCFA, a stark contrast to today’s 37 billion. Remarkably, the recent collections over a shorter two-year window surpass the earnings of the first eight years by 136.7 billion FCFA.

However, this substantial increase warrants careful analytical consideration. The financial yield of the Chad-Cameroon pipeline is simultaneously influenced by the unit tariff applied per barrel, the physical volumes of oil transported, and the dollar-FCFA exchange rate. Without a public, annual breakdown of the 222.2 billion FCFA, it remains challenging to precisely isolate the exact contribution of each of these variables to the observed progression.

Unit tariff repeatedly increased

The successive revaluation of the transit tariff stands as one of the primary drivers behind this revenue surge. Initially set at 0.41 dollars per barrel when the pipeline commenced operations, this unit price was first increased in 2013, and then again in 2018, reaching 1.321 dollars per barrel. The tariff has thus more than tripled over fifteen years, mechanically boosting Cameroonian revenues irrespective of the volumes transported.

A further revision was anticipated to take effect from October 1, 2023, in line with the agreed-upon mechanism between the involved parties. Nevertheless, no new rate has been publicly announced to date. This silence introduces an element of uncertainty regarding the future trajectory of these royalties, particularly as tariff negotiations frequently represent a recurring diplomatic challenge between Yaoundé and N’Djamena.

Historical comparisons require careful distinction

A historical review necessitates a clear distinction between various accounting scopes. COTCO, the operator of the Cameroonian section of the pipeline, had previously reported approximately 200 billion FCFA remitted to the Treasury between 2004 and 2013. However, this amount encompassed income tax and various other duties and taxes paid by the company, not solely the transit right. Consequently, it cannot be directly compared to the 222.2 billion FCFA recorded for the 2020-2025 period, which exclusively pertains to the passage fee. The precise share of the transit right within the 200 billion announced by COTCO was never detailed, making the 85.5 billion FCFA from the first eight years the most consistent reference point for comparison.

The current fiscal year continues to affirm the robustness of this revenue stream. By the end of May 2026, Cameroon had already collected 15.1 billion FCFA in transit fees, according to figures from the CPSP. While this intermediate level does not predetermine the annual outcome, it undeniably confirms the significant budgetary weight of the Chad-Cameroon pipeline in the revenues Yaoundé derives from Chadian crude oil exports. The publication of the new tariff, awaited since October 2023, remains a decisive factor for anticipating the financial trajectory in the coming years.