The Chad-Cameroon pipeline has become a structural revenue stream for Cameroon’s public finances. Between 2020 and 2025, the Cameroonian Treasury collected 222.2 billion FCFA in transit fees on Chadian crude oil transported to the Kribi maritime terminal. This figure, drawn from the Medium-Term Economic and Budgetary Programming Document 2027-2029 prepared by the Ministry of Finance, averages 37 billion FCFA annually—a sum paid in exchange for the crude’s transit through Cameroonian territory.
For landlocked Chad, which lacks direct access to the sea, this pipeline is the sole infrastructure enabling oil exports. The transit fee levied by Cameroon is calculated per barrel transported, with rates adjusted periodically through bilateral negotiations. The effective revenue for Cameroonian public finances is determined by this fee structure, the volume of oil transported, and the dollar-to-CFA franc exchange rate.
Transit revenue triples in a decade
A decade ago, the pipeline’s financial contribution was far smaller. Official data from the Pipeline Steering and Monitoring Committee (CPSP) shows that Cameroon collected 85.5 billion FCFA in transit fees during the first eight years of operation, inaugurated on October 3, 2003. This averaged roughly 10.7 billion FCFA annually—less than a third of today’s take. Over just two years, recent collections exceed the first eight years by 136.7 billion FCFA.
While this surge is significant, it cannot be attributed to a single factor. The pipeline’s revenue depends on multiple variables: the per-barrel transit fee, the volume of oil transported, and exchange rate fluctuations. Without a publicly available annual breakdown of the 222.2 billion FCFA, determining the precise contribution of each variable remains challenging.
Transit fees rise sharply over time
The most visible driver of increased revenue has been the repeated upward adjustment of transit fees. When the pipeline launched in 2003, the fee stood at $0.41 per barrel. It was first raised in 2013, then again in 2018, reaching $1.321 per barrel—a more than threefold increase in fifteen years. This hike alone has mechanically driven up Cameroon’s earnings, regardless of fluctuations in transported volumes.
A new fee adjustment was scheduled for October 1, 2023, as part of the agreed mechanism between the two countries. However, no updated rate has been publicly disclosed to date. This lack of clarity introduces uncertainty about the future trajectory of transit revenues, especially as tariff negotiations remain a recurring diplomatic issue between Yaoundé and N’Djamena.
A careful look at historical comparisons
Analyzing long-term trends requires caution. COTCO, the operator of the Cameroonian section of the pipeline, reported total payments of around 200 billion FCFA to the Treasury between 2004 and 2013. However, this figure included income tax and other levies paid by the company—not just transit fees. As such, it cannot be directly compared to the 222.2 billion FCFA collected from 2020 to 2025, which reflects only the passage fee. Since COTCO never disclosed the exact share of transit fees within its 200 billion FCFA total, the most reliable historical comparison remains the 85.5 billion FCFA collected during the pipeline’s first eight years.
The current operational period continues to highlight the pipeline’s financial importance. By May 2026, Cameroon had already collected 15.1 billion FCFA in transit fees, according to CPSP figures. While this mid-year snapshot does not predict the full-year outcome, it underscores the pipeline’s growing role in Yaoundé’s oil export revenues. The pending publication of the new transit fee—expected since October 2023—remains a critical factor in forecasting future earnings.
