The Chad-Cameroon pipeline has become a steady financial lifeline for Cameroon’s public treasury. Between 2020 and 2025, the Cameroonian government collected 222.2 billion FCFA in transit fees from Chadian crude oil transported to the Kribi maritime terminal. This figure, outlined in the Medium-Term Economic and Budgetary Programming Document (2027-2029) compiled by the Ministry of Finance, translates to an average annual revenue of 37 billion FCFA per year for facilitating the transit of oil through its territory.

Chad, a landlocked nation with no direct access to the sea, relies entirely on this infrastructure to export its oil. The transit fee collected by Cameroon is calculated per barrel transported, with rates adjusted periodically between the two countries. This system, combined with fluctuations in cargo volumes and the dollar-FCFA exchange rate, directly influences the pipeline’s financial yield for Cameroonian public finances.

Transit revenue triples over a decade

A decade-long comparison highlights a dramatic increase in revenues. Official figures from the Pipeline Steering and Monitoring Committee (CPSP) indicate that Cameroon earned 85.5 billion FCFA in transit fees during the first eight years of operation, from its launch on October 3, 2003, until 2011. The annual average at the time stood at around 10.7 billion FCFA, compared to 37 billion today. Remarkably, the recent six-year period has already generated 136.7 billion FCFA more than the first eight years, despite a shorter timeframe.

This surge warrants careful analysis, as the pipeline’s revenue depends on multiple variables: the unit tariff per barrel, the volume of oil transported, and the dollar-FCFA exchange rate. Without a publicly available annual breakdown of the 222.2 billion FCFA, it remains challenging to determine the exact contribution of each factor to the observed growth.

Tariff hikes drive revenue growth

The steady increase in transit fees has been a key driver of revenue growth. When the pipeline became operational, the unit tariff was set at $0.41 per barrel. This rate was revised upwards in 2013 and again in 2018, reaching $1.321 per barrel in 2023. Over 15 years, the tariff has more than tripled, significantly boosting Cameroon’s earnings regardless of transported volumes.

A new revision was scheduled for October 1, 2023, as per the agreed mechanism between the two nations. However, no updated rate has been publicly disclosed to date. This lack of clarity introduces uncertainty about future revenue trends, especially as tariff negotiations remain a recurring diplomatic issue between Yaoundé and N’Djamena.

Comparative analysis requires caution

A historical comparison demands careful scrutiny of accounting parameters. COTCO, the operator of the Cameroonian section of the pipeline, reported approximately 200 billion FCFA transferred to the treasury between 2004 and 2013. However, this amount included income tax and other duties paid by the company, not just transit fees. As such, it cannot be directly compared to the 222.2 billion FCFA for 2020-2025, which exclusively covers passage fees. The precise share of transit fees within the 200 billion FCFA reported by COTCO has never been disclosed, making the comparison with the 85.5 billion FCFA from the first eight years the most reliable benchmark.

The current operational phase 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 figure is provisional, it underscores the pipeline’s critical role in Yaoundé’s revenue from Chadian oil exports. The pending announcement of the new tariff, expected since October 2023, remains a crucial factor in forecasting future earnings.