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Why is Chad is losing 1 million euros a day in oil revenues?

By Solène Benhaddou
Posted on Tuesday, 6 July 2021 17:57

Chad has been able to undertake more infrastructure projects, thanks to its oil revenues. © Success story

In response to the ongoing pandemic, Chad’s government has cut taxes, resulting in a significant shortfall for its already stretched treasury.

“Despite an increase in the volume of exports and the price of Brent crude oil, oil revenues are declining, compared to the first quarter of 2020,” said Chad’s Observatory of Public Finance, in a note on the oil service that was published on 29 June.

Oil revenues decreased by -68.4% between the first quarter of 2020 and the first quarter of 2021 – from 102bn CFA francs (€156m) to 32.2bn CFA francs (€49m). This represents a shortfall of around €107m over three months, or €1.2m per day on average, for the Chadian state during this period.