The Chad-Cameroon pipeline has become a steady revenue stream for Cameroon’s public finances. Between 2020 and 2025, the Cameroonian Treasury collected 222.2 billion Central African CFA francs (FCFA) in transit fees from Chadian crude oil transported to the Kribi maritime terminal. The figure appears in the medium-term economic and budget programming document for 2027–2029, compiled by the Ministry of Finance. Over the six-year period, this amounts to an average annual collection of 37 billion FCFA for the right to allow the oil to cross Cameroonian soil.
Since Chad is a landlocked nation with no coastline, it relies entirely on this infrastructure to export its oil. The transit fee charged by Cameroon is calculated per barrel transported, with the rate adjusted periodically between the two countries. The actual yield for Yaoundé’s public finances is determined by this fee structure, the volumes shipped, and the dollar-FCFA exchange rate.
Transit revenue triples in a decade
Comparing the first decade of operations with recent years highlights the substantial increase. According to the Pipeline Steering and Monitoring Committee (CPSP), Cameroon collected 85.5 billion FCFA in transit fees during the eight years following the pipeline’s commissioning on October 3, 2003. The average annual intake was around 10.7 billion FCFA at the time, compared to 37 billion FCFA today. Despite the shorter 2020–2025 period, recent collections exceed the first eight years by 136.7 billion FCFA.
However, this growth requires careful interpretation. The pipeline’s yield depends on the per-barrel fee, the volume of oil transported, and the dollar-FCFA exchange rate. Without a public annual breakdown of the 222.2 billion FCFA, it is impossible to pinpoint which factor contributed most to the increase.
Multiple upward adjustments in transit fees
The sharp rise in transit revenue is largely driven by repeated fee increases. When the pipeline became operational, the fee stood at 0.41 US dollars per barrel. It was raised in 2013 and again in 2018, reaching 1.321 US dollars per barrel—more than tripling in fifteen years. This directly inflates Cameroon’s income regardless of the volume of oil transported.
A new adjustment was scheduled for October 1, 2023, under the terms agreed by both countries. However, no updated rate has been publicly disclosed yet. This lack of clarity introduces uncertainty about the future trajectory of transit fees, even as tariff negotiations remain a recurring diplomatic issue between Yaoundé and N’Djamena.
Comparing historical data requires caution
When analyzing trends, it is essential to clarify accounting boundaries. COTCO, the operator of Cameroon’s pipeline segment, reported roughly 200 billion FCFA paid to the Treasury between 2004 and 2013. However, this included income tax and other duties paid by the company—not just transit fees. Therefore, it cannot be directly compared to the 222.2 billion FCFA for 2020–2025, which reflects only the passage fee. The exact share of transit fees within the 200 billion FCFA has never been disclosed, making the 85.5 billion FCFA from the first eight years the most reliable reference point.
The current period underscores the pipeline’s financial significance. By May 2026, Cameroon had already collected 15.1 billion FCFA in transit fees, according to CPSP data. While this is an interim figure, it confirms the pipeline’s vital role in Yaoundé’s oil-export earnings. The expected release of the new transit fee, long overdue since October 2023, remains a key factor in forecasting future revenue trends.