Cameroon’s transit fees from Chad’s crude oil transported via the Chad-Cameroon pipeline reached 12.2 billion FCFA in the first four months of 2026. The figure, released by the Pipeline Steering and Monitoring Committee (CPSP), marks a 1.2 billion FCFA increase from the same period last year, representing an 11% year-on-year growth. This surge is driven by a cumulative volume of 16.1 million barrels of Chadian crude transported across Cameroonian territory during the reviewed period.
The backbone of Chad’s energy isolation
Stretching 1,080 kilometers, this critical infrastructure connects Chad’s southern oil fields to the Komé-Kribi export terminal on Cameroon’s coastline. Without direct maritime access, N’Djamena relies entirely on this pipeline to channel its oil production to global markets. Operational since the early 2000s under a consortium initially led by ExxonMobil, the pipeline remains Chad’s sole viable export corridor today.
For Cameroon, this geographic dependence translates into steady revenue streams. Each barrel crossing its territory generates a transit fee of $1.321, credited to the national treasury. While the mechanism is straightforward, its cumulative impact is substantial, especially as Yaoundé seeks to diversify income sources amid declining domestic hydrocarbon production.
Transit fees tripled over two decades
The current fee structure stems from negotiations initiated in 2013. Initially set at $0.41 per barrel, the rate was considered inadequate by Cameroonian authorities given the environmental and logistical risks assumed by the transit country. Under Yaoundé’s pressure, a five-year review clause was introduced, leading to successive upward adjustments in 2013 and 2018 that culminated in the current tariff.
Effectively, the unit rent has more than tripled over 15 years. This upward trajectory has progressively aligned Cameroon’s transit financial conditions with benchmarks in other African oil corridors, such as the BTC system in Central Asia or arrangements in the neighboring Chad-Cameroon-COTCO pipeline. Yet, the next scheduled tariff revision remains pending.
2023 fee hike still pending
As per the agreed schedule, a new tariff increase should have taken effect on October 1, 2023. More than two years later, no official announcement has confirmed the conclusion of negotiations or the implementation of any adjustment. The prolonged silence surrounding this matter raises questions, particularly as Cameroonian authorities have recently intensified efforts to optimize oil-related revenues.
Multiple factors may explain this stalemate. Chad’s political transition following Déby’s departure and N’Djamena’s budgetary constraints have limited negotiators’ room for maneuver. Additionally, Chadian oil production has fluctuated significantly, potentially prompting operators to advocate for tariff stability to safeguard the profitability of declining fields. Conversely, Cameroon’s priority is maximizing returns from an infrastructure with a finite operational lifespan.
Nevertheless, the current dynamics are undeniably benefiting the national budget. If the first-quarter trend persists, annual transit fee revenues could significantly exceed the 35 billion FCFA threshold in 2026. This would further cement the Chad-Cameroon pipeline’s status as a strategic revenue generator for Yaoundé, alongside Kribi’s gas exports and agricultural shipments. No official updates have emerged regarding the ongoing tariff negotiations with Chad.