Crude oil exploitation and empowerment of host communities in cameroon

PAN AFRICAN INSTITUTE FOR DEVELOPMENT WEST AFRICA
(PAID-WA) BUEA, CAMEROON
DEPARTMENT OF DEVELOPMENT STUDIES
A research project submitted to the Department of Development Studies of the Pan
African Institute for Development West Africa (PAID-WA), Buea, in partial fulfillment of the
requirements for the award of the Master of Science (MSc) Degree in sustainable development
with specialization in Peace, Conflict Resolution, and International Relations.
BY
TANGKO HANSON NGWENE NKWELLE
PAIDWA/00551/MSc/15
SUPERVISED BY CO-SUPERVISOR
PROFESSOR UWEM ESSIA MR. HANSEL KUKANGLEH TANTEH
APRIL, 2018.
CRUDE OIL EXPLOITATION AND EMPOWERMENT OF HOST COMMUNITIES IN
CAMEROON: THE CASE OF NDIAN DIVISION

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DECLARATION
I TANGKO HANSON NGWENE NKWELLE, hereby declare that this research project is my
original work and has not been presented for a degree in other Universities, and that all the sources
of materials used for the research project have been acknowledged accordingly.
_______________________________ ______________________
TANGKO H. N. NKWELLE Date
Mat No. PAIDWA/00551/MSc/15.

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CERTIFICATION
The research project titled: “CRUDE OIL EXPLOITATION AND EMPOWERMENT OF
HOST COMMUNITIES IN CAMEROON: THE CASE OF NDIAN DIVISION” is submitted
to the Department of Development Studies of the Pan African Institute for Development – West
Africa (PAID-WA) Buea, by TANGKO HANSON NGWENE NKWELLE Registration
No. PAID-WA/00551/MSc/15 for the award of the Master of Science (MSc) Degree in
Sustainable Development with specialization in Peace, Conflict Resolution and International
Relation.
_____________________________ ____________________
PROFESSOR UWEM ESSIA Date
SUPERVISOR
_____________________________ _____________________
Mr. HANSEL KUKANGLEH TANTEH Date
CO-SUPERVISOR
Accepted by:
_____________________________ ______________________
FONCHA JACINTA, Ph.D Date
HEAD OF DEPARTMENT

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DEDICATION
This project is dedicated to the Ngwene and Tangko family; for their support and prayers
throughout this project.

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ACKNOWLEDGEMENTS.
I sincerely thank my Supervisor Professor Uwem Essia and my co-supervisor Mr Hansel
Kukangleh Tanteh for their wonderful support, criticisms, guidance, patience and cooperation
despite their busy schedule, which contributed tremendously towards the completion of this work.
Thanks also goes to all the community indigenes who supported me in carrying out my research,
the population of Ndian for their cooperation and provision of answers to the questionnaires and
interviews.
I also wish to thank my father Bernard Ngwene Ph.D, my mother Tangko Comfort, my uncles Mr.
Victor Ngwene, Grandmother Ngwene Beltha, and Ngwene Diengou, for all their prayers,
financial and moral support to guarantee that this work is successful.
Special thanks goes to my siblings, friends, especially my course mates. Your advices, moral
support gave me the eagerness, ideas and courage to hammer ahead during the difficult moments
of the work and to those in the community who took time in providing me with information for
this work to be realized.
Finally, I give thanks to God for his Grace which took me through this work to get to this expected
end.

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ABSTRACT
Crude Oil is one of the economic resources of Cameroon, but reduced management practices make
it a significant source of frustration to the village communities in which they are located. This work
seeks to explore natural resource exploitation and empowerment in oil producing communities of
Cameroon with focus on Ndian Division. Moreover, the thesis presents the developmental
activities of Corporations towards development, and how socio-economic structures in local oil
village communities can be structured to benefit the indigenes of oil corporations in this part of
Cameroon. Also, to map potentials for conflicts in the immediate, medium and long-term, and how
to reconstruct them to achieve sustainable peace and development. The research employed a
qualitative approach using semi-structured interviews, documented materials and Internet sources
to collect and analyze data for the study and adopted conflict theories as theories of the research.
Interpretation of data was done, rather than the single theory approach. The research also applies
microlevel analysis and non-state perspectives, which is a deviation from previous studies, which
have involved macro-level analysis and state-centric perspectives in exploring oil resource studies.
The research findings reveal that the standard of living in these communities is very discouraging
as a result of the low purchasing power. The communities are full of very poorly constructed
buildings, and agriculture which is the backbone of the local economy is profoundly affected by
the activities of these oil companies. Also, the Corporate Social Responsibility carried out are
mostly beneficial to the communities around where the oil corporations are located limiting
beneficiaries. And the Corporate Social Responsibilities are not satisfactory to the communities.
Moreover, industries in Cameroon implement Corporate Social Responsibility to meet the
requirements of the law, and not as a strategy to develop and empower the area.
Key words: CSR, Corporations, Conflict, Benefit Sharing.

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Table of Contents
CERTIFICATION ............................................................................................................................................. ii
DEDICATION ................................................................................................................................................ iii
ACKNOWLEDGEMENTS. .............................................................................................................................. iv
ABSTRACT..................................................................................................................................................... v
Table of Contents ........................................................................................................................................ vi
Acronyms/Abbreviations..............................................................................................................................ix
List of Tables................................................................................................................................................. x
List of Figures................................................................................................................................................xi
CHAPTER ONE............................................................................................................................................... 1
GENERAL INTRODUCTION ............................................................................................................................ 1
1.1 Background to the Study.................................................................................................................... 1
1.2 Statement of The Problem ............................................................................................................... 15
1.3 Objectives of the Study .................................................................................................................... 16
1.3.1 Specific Objectives................................................................................................................... 16
1.3.2 Research Questions.................................................................................................................. 16
1.4 Significance of the Study .................................................................................................................. 17
1.5 Delimitation and Scope of Study...................................................................................................... 17
1.6 Study Area ........................................................................................................................................ 18
1.7 Organization of Work ....................................................................................................................... 19
CHAPTER TWO............................................................................................................................................ 20
LITERATURE REVIEW AND THEORETICAL FRAMEWORKS .......................................................................... 20
2.0 Introduction...................................................................................................................................... 20
2.1 Literature Review.............................................................................................................................. 20
2.1.2 Resource Curse Notion .................................................................................................................. 31
2.1.3 Understanding The Concept Of Corporate Social Responsible (Csr) ................................ 32
2.1.4 The Concept of Benefit-Sharing in Extractive Corporations .............................................. 34
2.1.5 State Challenges in Managing Crude Oil In Cameroon....................................................... 36
2.1.6 Community Challenges ........................................................................................................... 39
2.2 Theoretical Framework .................................................................................................................... 40

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2.3 Gaps Identified in Literature Review................................................................................................ 43
2.4 Conclusion......................................................................................................................................... 43
CHAPTER THREE.......................................................................................................................................... 44
RESEARCH METHODOLOGY........................................................................................................................ 44
3.0 Introduction...................................................................................................................................... 44
3.1 Research Design............................................................................................................................... 44
3.2 Sampling Technique and Sample Size .............................................................................................. 45
3.3 Data Collection Techniques/Instruments......................................................................................... 45
3.4 Target Population............................................................................................................................. 46
3.5 Data Collection Tools........................................................................................................................ 46
3.6 Primary Data Collection Techniques ................................................................................................ 46
3.6.1 Observation .............................................................................................................................. 47
3.6.2 Interview guide......................................................................................................................... 47
3.6.3 Questionnaire........................................................................................................................... 47
3.7 Secondary Data Collection Techniques ............................................................................................ 47
3.7.1 Documents ................................................................................................................................ 48
3.7.2 Internet ..................................................................................................................................... 48
3.8 Validity and Reliability of Instruments ............................................................................................. 48
3.9 Data Analysis and Presentation........................................................................................................ 48
3.10 Ethical Consideration .............................................................................................................. 49
3.11 Conclusion....................................................................................................................................... 49
CHAPTER FOUR........................................................................................................................................... 50
DATA ANALYSIS AND PRESENTATION ........................................................................................................ 50
4.0 Introduction...................................................................................................................................... 50
4.1 Presentation of Data......................................................................................................................... 50
4.1.1 Presentation of Demographic Data of the Respondents............................................................... 50
4.2 Presentation of Data According to Specific Objectives of the Study................................................ 51
4.2.1 Intervention by the extractive industries in CSR. .......................................................................... 52
4.2.2 Areas of Intervention in Corporate Social Responsibilities and empowerment in Ndian Division53
4.2.3 Employment rate in the communities by oil corporations............................................................ 55

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4.2.4 Potentiality of conflicts and how to reduce the risk and achieve sustainable development........ 56
4.2 Discussion of Findings....................................................................................................................... 58
4.2.1 Impact of corporations in the communities.................................................................................. 58
4.2.2 Challenges to community quality of life........................................................................................ 59
4.2.3 Analyzing Strategies for managing the risk of conflict for sustainable development................... 61
4.3 Implication of Findings...................................................................................................................... 62
4.4 Limitations of the Study.................................................................................................................... 63
4.5 Conclusion......................................................................................................................................... 64
CHPATER FIVE............................................................................................................................................. 65
SUMMARY OF FINDINGS, CONCLUSION, AND RECOMMENDATIONS ....................................................... 65
5.0 Introduction...................................................................................................................................... 65
5.1 Summary of Findings ........................................................................................................................ 65
5.2 Suggestions for Further Research..................................................................................................... 66
5.3 Recommendations will be directed according to objectives............................................................ 67
5.4 Conclusion......................................................................................................................................... 68
REFERENCES............................................................................................................................................ 69
APPENDIX 1................................................................................................................................................. 74
QUESTIONNAIRES ................................................................................................................................... 74
Appendix 2.................................................................................................................................................. 79
Interview guide ....................................................................................................................................... 79

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Acronyms/Abbreviations
CRS: ……………………………………………………….....Corporate Social Responsibilities
NMP: ………………………………………………............….Nigeria Mobile Police
RUF: ……………………………………………………….…...Revolutionary United Front
DRC: ……………………………………………………………Democratic Republic of Congo
SNH: …………………………………………………………….National Hydrocarbon Society
TEPCAM: ………………………………………………………Total exploitation production
Cameroon

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List of Tables
Table 4.1.1 Distribution of Respondents in Ndian communities according to sex……50
Table 4.1.2 Distribution of Respondents according age group…………………………51
Table 4.1.3 Distribution of Respondents according to occupation……………………..51
Table 4.2.2 Indicates interventions in CSR and beneficiaries in Ndian Division……..53
Table 4.2.4 shows the areas and period where conflict can arise and how to reduce the
risk and achieve sustainable development……………………………………………..56

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List of Figures
Figure 1: Satisfactory rate of CSR in the communities……………………………….54
Figure 2: Shows the level of employment……..………………………………………55

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CHAPTER ONE
GENERAL INTRODUCTION
1.1 Background to the Study
Natural resources such as land, water, timber, and minerals (metals and oil) are vital sources of
livelihoods/incomes globally, and its existence has always been a threat or a potential source for
disputes and conflicts in the world (Paul Collier, 2009). The dominant factors for disputes are
economical, because there is a mismatch between petroleum export revenue and development
performance. Despite the vast export earnings, most African oil producing countries are still weak
and far backward in development. The mismatch that has been witnessed between oil revenue
inflow and economic development performance contradicts the existing view in development
economics, whereby natural resource abundance is supposed to help the backward states to
overcome capital shortfalls and provide revenues for sustainable development (Uwem, 2012),
Three factors matter a lot of the risk of conflict: the level of income, its rate of growth, and its
structure. If a country is poor, in economic decline, and is dependent upon natural resource exports,
then it faces a substantial risk that sooner or later it will experience a demonstration or civil war
(Collier, 2009).
Furthermore, recent literature suggested that oil resources in developing states with weak
governance structures continue to impact negatively on the stability, growth, and sustainability of
such countries, as human rights abuses, are continuously on the increase (Ross, 2001; Nwokolo,
2012). Most of these situations have consequently resulted in series of conflicts which have either
turned violent or resulted in full-blown civil wars.
Ever since the discovery of crude oil as a significant energy provider, this precious liquid (also
known as the black gold) has continued to command the speed of development of most regions of

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the world except in areas where the paradox of plenty operates. Curwin (2015) further revealed
that since August 1959 an American Colonel Drake drilled the first successful oil well in Titusville,
oil has remained both big business and politics. Cameroon can boast of its most significant crude
oil reserve which is found in the Bakassi Peninsula (Oroko voice. 2017) in Ndian Division.
Reserves of oil have been noted along the littoral stretch of the South West Region spanning all
through the Rio-Del Rey area and are being exploited by major companies.
Moreover, crude oil has been the source for many armed conflicts; examples are that of Nigeria,
where Oil companies were sometimes blamed for giving rise to disputes and social unrest in the
areas where they operated (Isola et al. 2014). This is particularly evident in the Niger Delta where
violence, oil theft and destruction of pipelines which increased sharply during the mid-1990s and
peaking in 2006–07 as militant groups formed and communities vented their anger about limited
employment opportunities, inequitable sharing of oil revenues, environmental degradation and
threats to local farming and fishing livelihoods. Chevron Texaco was estimated to have lost around
750 million US Dollars as a result of community strife (International Herald Tribune, 2004, cited
in European parliament policy report, 2011). Typically, such a country with natural resource
potential runs a risk of violent conflict when the complaint of the community is not taken into
consideration.
Nevertheless, in the Niger Delta, the influx of oil companies and the heightening of their operations
are not in line with an agenda for the development and empowerment of the state. The oil
companies claim to have executed several projects in the host communities as a means of
empowering the people, and these were indeed the proximate ‘cause’ of the conflict (Alabi et al.,
2012). But the significant brute fact is that civil war is heavily concentrated in countries with low
income, economic decline and dependent upon natural resources.

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In respect of the three economic characteristics, per Mr. Moki Joseph, April 2017, Cameroon is
unique regarding natural resource dependence. Ndian Division still has a much higher ratio of land
to population than others and natural resources which are distributed under the earth. Furthermore,
for various reasons, Cameroon has not managed to break into the global market of manufactures.
Whereas 20 years ago the developing countries were dependent upon natural resource exports, now
80% of developing countries’ exports are manufactured (Collier, 2010).
To date, natural resources have primarily been bad news for Africa, and Cameroon in particular.
But it is not supposed to be like that. Revenues from natural resources are an enormous opportunity
for low-income African economies, particularly for interior countries with competitive climatic
conditions, such as Chad, natural resource (oil) probably offer the only option for significant
poverty reduction. This is the dilemma: resource rents (giving out the resources to be exploited by
multinational oil companies for a particular period signed and accepted by the country in question)
have the potential for good as well as for bad (Collier, 2006). And Conflict is an indication that
there are mismanagement and misunderstanding that requires attention and proper actions (Baye,
2014).
However, their utilization and benefit sharing are potential sources of disputes and conflicts,
especially in less developed countries. The general trend is that people within and around
resourcerich communities often complain of being marginalized, sidelined or ignored in the
utilization and benefit-sharing of the resources. From the time of Cameroon- Nigeria crisis over
the Bakassi Peninsula, Ndian Communities will find it very easy to get back into another oil
conflict, if at all nothing is done to settle their complaints (Wright et al., 2004). When a natural
resource like crude oil is poorly managed or inequitably shared or policies implemented without
due consideration for contexts and communities, they can contribute to the tension that escalates

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into Violent conflicts, or feed into and aggravate pre-existing conflict dynamics (Collier, 2009).
Such disputes most often degenerate into violent unrest and emergence of ethnic militia that binate
the problem further.
Moreover, population growth and environmental poverty are intensifying competition over
already scare resources, such as oil, land, and water. And as such, it’s of no surprise that natural
resources can be said to be a key driver in growing number of conflict, with the potential
consequences for international, regional and national peace and security per Mr. Moki Joseph
(2017). In light of these risk, attention needs to be paid to mechanisms for mitigating and resolving
the natural resource conflict. In current years, there has been increasing recognition of resource
disputes as a driver of conflicts and violence. These conflicts and violence have wrecked
unmeasurable consequences in global efforts to maintain world or regional peace, stimulate
cooperation and exchanges and promote sustainable development through good governance.
The strategy of saying ‘just leave the resources in the ground’ sacrifices the potential for good as
the price of avoiding the bad. Owed to this fact, the exploitation of resource by some oil
corporations usually lead to conflict both because the community will be seen not to benefit from
it and will want to get their share which then escalates to a dispute. Historically, such a strategy
would usually have been an improvement on what happened. But, as well as being a counsel of
despair, it is impractical.
As a result of the geopolitics of oil, there is a rush of discovery points in small, poor African
countries like Equatorial Guinea, Mauritania, Sao Tome and Principe, Gambia, and Cameroon.
These resources are not going to be left in the ground. The challenge for both Africa and the
international community is to improve on the political and industrial governance of such resources
so that the future is not a routine of the past.

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Paul Collier studies brought out the fact that two contrasting examples to help bring the issues into
focus. Thirty years back, Botswana and Sierra Leone had the same level of per capita income, and
both received massive diamond income. The government of Botswana succeeded intensely in
connecting these revenues for economic growth: for several years Botswana was not just the fastest
evolving economy in Africa, but also the fastest growing economy in the world. On the one hand,
as a developing country, it was easy to imagine Botswana’s fate in the absence of diamonds, and
on the other hand, Sierra Leone had a dramatically different experience (Collier, 2004). The
diamond revenues fomented great political contests which destroyed the society.
Resources have always posed a threat to its area of existence and this notwithstanding, there have
been a series of conflict caused by the presence of some resources like oil which is present in
countries around the Gulf of Guinea. Often, oil money is a driving force in pushing longstanding
political rivalries to the boiling point (Abiodun Alao, 2011). In the oil-rich Kalabari region in
Nigeria, militias fought and killed thousands of people in 1995 over the royalties the oil producer
Shell (September 7, 2005, Associated Press.). The case of Nigeria, which is the world's
seventhbiggest oil producer, illustrates how oil can be a curse in Africa as was the case in Delta
State. According to a Catholic Relief Services report (CRSR), "oil industry growth in repressive,
corrupt and developing countries too often results in more repression and corruption’’.
Such violent conflicts around natural resource benefit sharing have informed the named ‘resource
curse phenomenon,’ whereby what should have been a blessing becomes the bases for longstanding
disputes and destruction of lives and property. The conflict in the Niger Delta region between local
militias, the government, and transnational companies is one of the examples of natural resource
(crude oil) fueling conflict in Africa. This conflict was as a result of the corrupt nature of the

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Nigerian government and the neglect of delta state leading to intense suffering from environmental
and economic difficulties faced by the country.
Several research studied the relationship between natural resources endowment and economic
development. This is often referred to as the ‘paradox of plenty’ or ‘resource curse thesis’ (world
development report (WDR), 2009). In most countries and legal regimes, oil, gas, and minerals are
presented to the state, and as such, Revenues in the first instance are accumulated to the
government, calling for government action, in one way or another, to spend some of the stored
revenues back to the communities. There is a recurrent argument on how or why this very often
results in policy failures and poor governance, several strands of cases are presented in corruption
in light of the government (African Development Bank Report (ADB), 2009). The natural resource
- development paradox preached that regions with an abundance of natural resources, respectively
point-source non-renewable resources like ores and fuels, tend to have a less economic extension
and worse construction results than those with fewer natural resources (Bisong, 2014).
The ‘resource curse phenomenon’ refers to the notion that regions with an abundance of natural
resources, specifically point-source non-renewable resources like minerals and fuels, which tend
to have less economic growth and worse development outcomes than countries with less natural
resources. This line of thinking is important today because of resource-rich, but economically
tottering regions has been noted for prolonged conflicts which only go further to thwart the
development drive of such regions. The implication of such a state of affairs is the rise of the
feeling of anger which results in conflicts. As noted by Collier (2007), natural resources can, and
often do, provoke conflicts within societies as different groups and factions fight for their share.
Sometimes, these emerge openly as separatist conflicts in regions where the resources are produced
(such as in Angola's oil-rich Cabinda Province).

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In Delta state, oil exploitation and production led to a severe conflict; this went a long way in the
killing of community indigenes because of the presence of natural resource which was exploited
by transnational oil companies, and in return to the state, nothing was done regarding benefit
sharing and development. The contemporary conflict in the Niger Delta first started in the early
1990s over tensions between international oil corporations and a number of the Niger Delta's youth
ethnic groups who feel that they are being exploited, particularly the Ogoni and the Ijaws (Alao,
2011). Starting in December 1992, the conflict between the Ogoni and the oil corporations intensify
to a level of higher gravity and intensity on both sides. Both parties started carrying out acts of
violence and issued a demand to the oil companies (Shell, Chevron, and the Nigerian National
Petroleum Corporation). Some claims like $10 billion in accumulated royalties, damages and
compensation, and "immediate stoppage of environmental degradation," as well as
negotiations for an agreement on all future drilling.
The Ogonis threatened mass action to disrupt oil company operations if they failed to comply with
their demands, and thereby shifted the focus of their activities from the unresponsive federal
government to the oil companies producing in the region which eventually led to violent conflict.
Competition for oil wealth fueled violence between ethnic groups, causing the militarization of
Nearly the entire region by ethnic army societies, Nigerian military and police forces, notably the
(NMP) Nigerian Mobile Police (African Orbit. 2017). It has been noticed that territorial disputes
occur in border zones and offshore areas that are known to possess no particular value, but suddenly
become very valuable with the discovery of oil.
The Sierra Leone Civil War (1991– 2002) which began on 23 March 1991 when the Revolutionary
United Front (RUF), with support from the unique forces of Charles Taylor’s National Patriotic

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Front of Liberia (NPFL), intervened in Sierra Leone in an attempt to overthrow the Joseph Momoh
government was all because of the natural resource. The resulting civil conflict lasted 11 years,
enveloped the country, and leftover 50,000 dead. Throughout the first year of the war, the RUF
took control of vast swathes of territory in eastern and southern Sierra Leone, which were abundant
in alluvial diamonds. The government's ineffective response to the RUF and the disruption in
government diamond production precipitated a military coup d'état in April 1992 by the National
Provisional Ruling Council (NPRC). Before the end of 1993, the Sierra Leone Army (SLA) had
succeeded in driving the RUF rebels back to the Liberian border (UNAMSIL Background report,
2017).
The most outstanding contemporary example has been the Eastern Provinces of the Democratic
Republic of the Congo (DRC), where various armies, rebel groups, and outside actors profited
from mining while contributing to hostility and exploitation during wars in the region. The four
most commonly mined conflict minerals (known as 3TGs, from their initials) are cassiterite (for
tin), wolframite (for tungsten), coltan (for tantalum), and gold ore, which were extracted from the
eastern Congo, and moved through a variety of intermediaries before being purchased. These
minerals are essential in the manufacture of a variety of devices, including consumer electronics
such as mobile phones, laptops, and MP3 players. The looting of the Congo's natural resources
was not limited to domestic actors but also some neighboring actors sharing borders boundaries
with DRC Congo. During the Congo Wars (First Congo War (1996–1997) and Second Congo War
(1998–2003)), Rwanda, Uganda, and Burundi mainly profited from the Congo's resources.
Empirical studies also assert that ‘countries whose wealth is largely dependent on the exportation
of primary commodities which Include both agricultural produce and Natural Resources, are highly
prone to civil violence. According to a recent United Nations (UN) report, the last sixty years at

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least 40 percent of Civil conflicts on the African continent have been connected with natural
resources. Intrastate disputes that have a link to natural resources are twice as likely to relapse
within five years as those that do not (Bongani, 2012). Current scholarly discourse on resource
Endowment and armed conflict gained currency in the late 1990s when empirical and theoretical
literature emerged indicating a correlation between a country’s natural resource endowment and
the occurrence of violent civil war. Since then, several models have emerged the attempt to
discover the factors that affect the risk of conflict. According to Collier and Hoeffler, civil wars
are motivated either by greed or grievance.
Despite the excitement surrounding the ongoing calls for transparency and good governance in
Africa countries, these efforts, though commendable in themselves, will not put an end to conflicts
over natural resources in the continent countries. Although some of the battles are rooted in
corruption and lack of democracy, a far more significant percentage of these conflicts have
emerged because these resources are not distributed and managed in ways that benefit and
empower the population. Especially the resource producing communities, even in so-called
democratic countries (Abiodun, 2011), and Cameroon is one of the countries rich in natural
resources, and also its quest for transparency and good governance falls in line with the argument
brought forth by Aloa.
As indicated by Paul Collier the core purpose of the state is to provide public goods. However, two
subjects can be regarded as, necessary rather than optional: security and accountability. Without
these two developments, it is responsible for being frustrated. Without security against violence,
property rights are void; and without accountability, both property rights and the supply of other
public goods depend upon the personal whim of the ruler (Collier, 2010). The presence of
important natural assets can undermine both security and accountability.

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Chief Bisong Etahoben (2014) argues that before countries such as Angola, Equatorial Guinea,
Ivory Coast, Uganda amongst many others became oil exploiters and exporters, Cameroon was
one of those few African countries that found and began exporting oil not long after independence.
And while latecomers into the oil club have so much to show for their black gold, Cameroonians
have little to point by way of advancement after more than thirty years as a petroleum exporting
country (Bisong, 2014).
It is in light of the above, the present study examines the situation in Ndain Division of Cameroon,
rich in crude oil deposits, and where the majority of community members complain of being
marginalized and neglected while oil is drilled and sold for billions of XAF on a daily basis. It has
been in the record that the country has some areas with oil, especially in the South-West Region.
As seen from the earlier analysis of natural resources being one of the causes of Africa’s interstate
and intrastate wars, Cameroon is not different or a particular case we could well see this in the time
of the Cameroon Nigeria crisis over the Bakassi peninsula. Cameroon’s reserves stood at 200
million barrels in 1980 and fell to 80 million in 2004 before starting a lagging rise in 2005 to 85,000
million, 90 million in 2006, 98 million in 2008 and returning to
200 million in 2011 after the Ebonde territories in the Littoral Region started production
(Lemarchand, 2012).
Ndian produces 160 000 barrels of crude oil daily since 1972. In 2013, $100 /barrels per day
generated $5,8 billion. In 2014, $ 120.00/barrels per day generated 7.0 billion United States dollars
In 2015, 80/barrels = 4.7 billion In 2016, 50 January -August =$ 1.9 billion Total =$ 19.4 billion
for Three and Half years. Ndian has no fuel filling station, NO petroleum depot, no refinery. The
sole refinery is in Limbe 93 km away from Ndian and in another division (Fako division) (Oroko
Voice. 2017).

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Before the production in the Littoral Region was declared, more than 99 percent of petroleum
production in Cameroon which estimated over 70 percent of the nation’s foreign exchange reserves
was in the Southwest Region. However, there is no all-season road linking the various
communities in Ndian Division, whereas many French-speaking regions have been benefiting from
the oil wealth in the form of taxes paid from these transnational oil corporations (Bisong, 2014.).
Contrary Ndian should enjoy the warm arms of development. However, the region still witnesses
a very high degree of backwardness. It is lagging behind regarding socio-economic and
infrastructural development which has therefore kept it in the doldrums of underdevelopment
(Ndzifon et al., 2015).
The Ndian Division is a department of the SW Region in Cameroon. The department covers an
area of about 6.626, and as of 2001, it had a population of 129.659. The capital of the Ndian
Division lies at Mundemba. This Division is divided administratively into nine communities
namely: Bamuso, Dikome-Balue, Ekondo Titi, Idabato, Isanguele, Kombo Idinti, Mundemba,
Kombo Abedimo and Toko (Ndzifon et al., 2015). The qualitative and quantitative mutation of
socioeconomic variables otherwise referred to as development witnessed in any defined
geographical region, is to a very great extent, a function of the economic value of the region which
is measured regarding the available resources (Kimengsi, 2011). The above statement implies that
the availability of natural resources, all things being equal, determines the level of development
witnessed in any region. Since there is a strong correlation between resources and development, it
could be concluded that where resources abound (natural and human), we should expect
development.
Natural resources produce income that acts as a source of power be it in politics or social relations.

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Resources have the potential of leading a conflict or trigger conflicts, and this is a Common
scenario. Since most of the conflicts are caused by the presence of natural resources in some
countries in the globe due to agitations which come up over time in the community where the
resources (crude oil) are located.
Though involved in the depths of the Cold War, the last half of the twentieth century was a time in
which the standard of living across the globe rose considerably. Many of the technological and
industrial advancements during this period were dependent on the ability to increasingly obtain,
harness and capitalize on many natural resources. While these seemingly abundant natural
resources have spurred growth in many parts of the world, they are often found in some of the
world’s most fragile social, political and ecological regions. Indeed, natural resource-rich states
often find themselves at the bottom of the failed states. (Curwin, 2015).
To complicate matters, from 1950-2000 over 90 percent of the primary armed conflicts occurred
within countries containing biodiversity hotspots history regions with a significant reservoir of
biodiversity under threat from humans located in western and eastern Africa, along with the
Mediterranean, the Caucasus, Southeast Asia and in large portions of Latin America. Wars are now
less often fought in Europe among competing powers, but in their natural resource-rich former
colonies, where the combatants often have local needs, grievances and goals. Twentieth-century
international institutions have helped guide the world through a period of unprecedented growth
(Ndzifon et al., 2015). However, they have unsuccessfully petitioned twenty-first-century threats
such as rising inequality, intrastate conflict, and global warming. Natural resources can serve as a
drive towards conflict or cooperation, prolong a bloody dispute and play an essential role in the
post-conflict process. Nevertheless, foreign corporations can be seen as an instigator of resource
conflict in cases like that of Sierra Leone, Congo Democratic Republic. Where foreign

13
corporation’s activities of exploitation in natural resource were not beneficial to the people. The
Ndian Area serves as an economic corridor between neighboring Nigeria and Cameroon.
The economic potentials are enormous, and this has earned it the title of an “economically vibrant”
part of the South West, but access to the consumer centers and markets remains problematic. This
has reduced the economic live wire of the division to a standstill. It has become “perilous” and
must be given due consideration.
An economy that is suffering from backwardness still faces a poor road situation which further
worsens the state of affairs as exemplified by the rise in the prices of essential commodities in the
area due to the poor state of the roads, especially in the rainy season. To support the further
impoverishment as communicated per Mr. Ekoli, will be necessary to know that while the transport
fare from Mile 17 (Buea) to Kumba which is over 69km is just 1500, that of Kumba to EkondoTiti
which is only 50 km moves to 4000frs in the heart of the wet season. The poor communication
network acts against the much-needed development of these regions, thus, accounting for the
spatial inequality scenario of the areas.
According to Fogwe and Mbaha, 2008, cited in Jude Ndzifon et al. 2015 acknowledged the role of
natural resources (the geography of the areas) as an important factor accounting for every pace of
development. It is necessary to tend out that the role of the government, the manager of these
resources, is also primordial. The fatigue of regions with sound resource base and very little
development to show for may be found in politics and not in resource level implications.
The above situation agrees with the present scenario in the Ndian Area where it would seem that
some groups of people are either too comfortable or too insensitive to do what is right to develop
the area. If this administrative division continues to stay in the doldrums of underdevelopment and
chewing poverty in riches, then there is a need to suggest pathways through which the livelihoods

14
of these groups of people who have been described as “fast developing the Niger Delta tendencies”
should be improved. ''The goose that lays the golden eggs should not be neglected'' because it could
provide the cause of regional instability in the future when the indigenous people stand up for their
rights in much the same way as their brothers of the Niger Delta Region of Nigeria (Isola et al.,
2014)
According to Mr. Ekoli (2017), a local pressure group emerged from the Ndian community and
describing itself as Concerned Citizens of Ndian (CCD) which called on the government to pay
royalties from natural resources extracted from the marshy area to its local councils for rapid
development. It should be noted that Ndian Division, produces most of Cameroon Crude but the
division has no access roads, and its residents are mired in extreme poverty and suffering.
Furthermore, to Atabong (2016), Ndian plays host to 13 licensed companies. These corporations
exploit crude oil, and natural gas has over 400,000 hectares of national Biosphere reserves; over
20,000 hectares of site Global-owned plantation, over 13 hectares of state-owned PAMOL
plantation and over 100,000 hectares of state-owned forest and timber licenses, yet they cannot
boast of 3km of tarred road over half a century after independence. To name a few of these
operational oil companies, we have ADDAX petroleum, Glencore, SINOPEC, PECTEN and
Kosmos that was once in the area operating in oil extraction by digging deep wells into the ground
to extract the oil. Oil exploitation has had severe environmental and human consequences for the
indigenous peoples who inhabit the areas surrounding oil extraction, and indigenous minority
communities in these areas receive no economic benefits (Collier, 2009). Development strategies
focused on increasing foreign demand for oil and these companies turn to boost the level of
extraction and have not caused overall development.

15
1.2 Statement of The Problem
Though Cameroon is one of the world producers of oil, with 113th
position as exporters of oil, over
half of the country’s population lives below the poverty line (Oil Finds and Production Mafia in
Cameroon, 2014). The fact that the government is corrupted and pays less attention to the
community, mismanagement of the revenue and poor tax policy system and causing the community
not to benefit from the oil revenue puts the population in a terrible state. It is increasingly being
recognized that dispute is generated when certain parts of the people, groups or communities feel
excluded from the development process especially in areas where the resources are present.
This community has contributed significantly to the economy of the country as a whole. But the
people cannot be proud of right school structures, good communication system like roads.
Also, they suffer from high prices as an effect of poor transport roads to carry these goods from
Kumba to the interior areas, and their complaints about these CSR owed to them by both the
government and the oil corporations are neglected. Ndian has no fuel filling station, NO petroleum
depot, no refinery, meanwhile exploitation of oil by oil corporations is carried out in this part of
the country. With all these billions gotten from the oil exploited in the area, yet the people live in
dreadful conditions of mass poverty, shabbiness, and hardship which will affect the empowerment
and eventually lead to a conflict.
This Study is focused in the Ndian community of the South-West Region of Cameroon and the
Cameroon government programs and implementation of various modes of benefit-sharing if any
exist in the areas of oil and gas extraction which will act as a means of empowerment in the
communities and reduce risk in falling into a conflict situation. However, what should be most
important in the principles of the government should be the high level of corporate social

16
responsibilities implementation and community development through benefit sharing specifically
to the community.
1.3 Objectives of the Study
The main objective of the study is to explore crude oil exploitation and empowerment in oil
producing communities of Cameroon, using the case of Ndian Division.
1.3.1 Specific Objectives
 To examine benefit-sharing and its effects on the quality of life in the oil producing
communities of Ndian Division.
 To undertake beneficiaries’ assessment of the Corporate Social Responsibility (CSR)
implemented by the Oil Companies operating in the area.
 To map potentials for conflicts in the immediate, medium and long-term, and how to
reconstruct them to achieve sustainable peace.
1.3.2 Research Questions
1. Are the managing strategies in crude oil exploitation in Cameroon beneficial to the resource
community?
2. To what extent do the Corporate Social Responsibility schemes respond to the aspirations
of the people of Ndian?”
3. Which are the areas from where conflict can begin and what are the peace-building
measures that can mitigate the potential of such conflict?

17
1.4 Significance of the Study
To the local people
Exploitation of crude oil in this region is a huge income to the government. This study will help
the people to understand the risk of oil and its relationship to conflict. And how this exploitation
of oil can be used to empower their communities
The Government
This study will come up with some significance. First and foremost, the study will show how the
presence of resource in Cameroon has the power to cause conflict in Cameroon and how this could
be avoided. And it will also help the government to know how to manage the resource to benefit
all and not only the government and the oil corporations but also the communities in question.
Notwithstanding it will come up with some recommendations to avoid the potentiality of these
resources leading to a conflict.
To the Researcher
To the researcher, this study will help add to the existing body of knowledge on crude oil
exploitation and empowerment in Cameroon and it will serve as a source of secondary data for
research in this area of study.
1.5 Delimitation and Scope of Study
The area of focused in this research is the Ndian Division of Cameroon in the South-West Region
of Cameroon. This Division is divided administratively into nine communities. This thesis spans
from 1981 when the first state refinery was established in Limbe in the South West Region to
2017 when Cameroon experienced an increase in crude price.

18
1.6 Study Area
Location
Ndain is a department of the South West Region of Cameroon. Which covers an area of about
6.626km2
and has a population of about 129,659. The capital town of Ndain lies at Mundemba.
This deparment shares boundaries with kumba in the East, and Nigeria in the West. This part of
the country is made up of 9 communities namely, Mundemba, Ekondo tit, Dikome Balue,
Bamusso, Toko, Kombo Itindi, Isangele, Kombo Abedimo and Idabato (Bureau central des
rescensement et des etude population, 2015).
Climate
The Ndian Division has an equatorial climate with two main seasons: the dry and wet seasons. The
dry is usually very short and runs from November to February. While the wet season is long and
runs from March to October.
Drainage
The area is drained by streams and rivers. Most of the streams and rivers take their rise from the
Rumpi hills and the Northern part of the Korup National Park. Rivers and streams take their rise
from the Rumpi hills and flows down to the other parts of Ndian (Mundemba Monographic studies
2010).
Relief
Ndian Division is of hilly topography, and gentle slopes gradually increasing as we go from the
south west coast of River Ndian to the undulating slopes of the rumpi hills forest reserve in the
south west stretching from right up to took Sub Division. Another hilly topography is found in the
south east of the Mundemba Municipality (Mundemba Monographic studies 2010).

19
1.7 Organization of Work
 This work is divided into five chapters which will run through to the attainment of the
objectives of the study.
 Chapter one will be to examine the general knowledge and background of crude oil
conflicts.
 Chapter Two mainly consists of a review of related literature, conceptual framework, and
gaps, in the research and ways to fill them.
 Chapter Three involves the methods of the study. It consists of a sampling strategy, method
of data collection, analytical approach and methods of validating the results.
 Chapter Four is focused on the presentation of the findings according to objectives. Finally,
 Chapter Five will consist of a summary of findings, conclusion, and recommendations.

20
CHAPTER TWO
LITERATURE REVIEW AND THEORETICAL FRAMEWORKS
2.0 Introduction
This chapter examines related literature, theoretical framework and gaps identified in the literature and
how the research shall attempt to fill the gaps.
2.1 Literature Review
Despite the provisions of the operating companies in the Ndian division of Cameroon, nothing yet
protects the rights of indigenous people who recite in the community. With their rich Region, they
were more likely to benefit legally and financially from the sale of useful resources. Which they
possess than those who are benefiting development (another region of the country like Litoral,
where the taxes of oil exploitation is paid) at the expense of the Ndian Community. The community
indigenes are not being treated fairly because the government is practicing resource rents when it
comes to crude oil activities in the region.
It is important to note that in some cases conflicts originated before the discovery of petroleum, but
the conflicts became interwoven with oil issues as the importance of oil increased and made oil a
factor for conflict (armed conflict). The drivers of such tendencies are territorial disputes,
proindependence riots, and separatist/sovereign fights.
It has been noticed that territorial disputes occur in border zones and offshore areas that are known
to possess no particular value, but suddenly become very valuable with the discovery of oil.
Notwithstanding, for several decades, neither the Nigerian nor Cameroonian ruling elite displayed
any specific interest in the Bakassi Peninsula (Baye, 2014). Also, there was no display of any
concern nor initiating any program that was capable of upgrading the dreadful conditions of mass
poverty, shabbiness, and hardship in which most Bakassi inhabitants lived. But struggles over the
ownership of Bakassi, later on, became an Alma matter between Nigeria and Cameroon. These two

21
countries began the battle over this region immediately it was discovered in the eighties that the
Peninsula was floating on reserves of crude oil. It was then that the elite of both nations started
making severe claims and counterclaims over the territory.
Other literatures, pointed out that, Pro-independence fights occur when oil is alleged to exist in an
area primarily occupied by an ethnic minority, and the majority of oil revenues go or are expected
to go to government administrators in the National Headquarters. In this connection, members of
the ethnic minority often recognize a strong reason to break away and institute their ethnic state,
intending to get all of the oil revenue (Baye, 2014). He went further to explain that this sort of fight
had occurred in the southern part of Sudan. In the case Delta region of Nigeria, ethnic minorities
are fighting to gain greater autonomy (and a more significant share of oil revenues) rather than a
separate state. This is not different from the case of the Ndian community where several appeals
have been made in other to see into their suffering and shallow level of development as a way of
getting a fair share of what God has blessed their land.
Works of literature show that oil has been an essential part of the Nigerian economy considering
the vast reserves of petroleum were discovered in Nigeria in the 1950s. A good example was how
the revenues from oil were increasing over time from 219 million in 1970 to 10.6 billion 1979
(Naira). Currently, Nigeria as an oil producing country earned over 95% (percent) of its foreign
transaction in the sale of oil in the global market. International oil corporations have dominated oil
exploration, drilling, and transportation in Nigeria. For example, Shell controlled roughly 60
percent of the domestic oil market in Nigeria. Shell operates many of its oil facilities in the oil-rich
Delta region of Nigeria. Oil production in Nigeria has had severe environmental and human
consequences for the indigenous peoples who inhabit the areas surrounding oil extraction.

22
Indigenous groups are further impoverished due to environmental degradation from oil production
and the lack of adequate regulations on multinational companies, as they become more vulnerable
to food shortages, health hazards, loss of land, pollution, forced migration, and unemployment.
Factional/dynastic struggles occur because whoever controls the government of oil-producing
states also controls the allocation of oil income. Those in control will seek to maintain power for
as long as possible, using ham-fisted repression and election rigging, while those excluded from
force will have a powerful incentive to use any means required to gain control (including armed
rebellion, terrorism, or coup d’état). These sorts of factional struggles have been a consistent
pattern in countries like Nigeria and Saudi Arabia, as well as in most oil-rich states. In other
countries, especially Venezuela, disputes over the allocation of oil revenues have taken the form
of political violence between competing parties and interest groups.
Petroleum licensing is the act of giving permits (geographical areas at land or sea) to a company
or allowing them to search for commercially feasible deposits for the exploitation of oil (PLR,
2016). Each sovereign country distributes licenses in what is typically called a licensing round.
The procedure for such can significantly vary from country to state. The most substantial change
is usually if it is an attempted system or a funding system. In the attempt system, each company
will offer a bid to gain the rights for the petroleum exploration at the license for a limited period.
The highest bid will obtain the rights. In the funding system, the permit will be granted to the
company or joint venture that shows the highest interest and ability for the exploration of the
license. The company experience can prove this, projected plan for the investigation (by high
investment) and or most extended presence in the country as a petroleum exploitation company
(Petroleum licensing, 2016).

23
Resource wealth raises the danger of civil war, but for every resource-rich country that has suffered
from violent conflict, two or three have avoided it like in the case of Nigeria, the level of the civil
war effect on both the government and the population of the state was not a good one to write
about. Better policies may help to reduce the likelihood that resources will generate conflict and
direct resource wealth instead of education, health, and poverty reduction (Marx and Engels 1998).
The government in her policies in oil extraction should turn more to benefit the people and not the
exploiting companies or the government themselves as the case of the role that SHN plays in
Cameroon in the oil exploitation sector.
To go further, Ian Bannon (2001), stated that, ‘’It is not surprising that people are more likely to
rise against their government when their economic predicament is bad and getting worse. Rebel
groups find it easier to recruit new members when poverty and unemployment are widespread
when there exists a high rate of combat and looting seems more attractive by comparison’’
(Bannon, 2011). In the case of the Ndian communities, from the time of the Cameroon Nigeria
crisis over the Bakassi Peninsula, the will find it very easy to get back into another if at all nothing
is done to settle their complaints. Many other resource-based economies have delivered
inadequately, not because they have exaggerated minerals but because of the failure to develop
their mineral potential through relevant policies to be followed. These issues matter precisely
because of their relevance for policy decisions (Wright et al., 2004).
The petroleum industry of Cameroon is engaged in all stages of petroleum production. Specifically:
(i ) exploration, (ii ) development of infrastructure, (iii ) production of crude oil, (iv) storage of
fuel, (v ) storage of petroleum products, (vi ) distribution of petroleum products, and (vii )
development of petrochemicals (Agarwal, 2017).

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Besides, studies carried out have explained that Cameroon exploration involves getting a permit,
from the Ministry of Mines, Water and Energy. By decree No. 64/LF/3 of June 1964, it may be
issued only to persons or business firms with an adequate technical capability and Financial
capacity to undertake the operations, to legal residents of Cameroon and once obtained is valid for
25 years. As noted earlier, activities in this area primarily fixed on on-shore exploration and later
shifted to off-shore explorations. However, with the decline in petrol prices in the world market in
1986, exploration activities in Cameroon were reduced (Bikas et al., 1990).
In line with the principles of the Government of Cameroon, The Société Nationale des
Hydrocarbures (SNH) controls at least 50% of commercial oil production. Foreign investment in
this area is through SNH, and foreign firms refund 50% of the expenses to SNH once oil production
begins. There existed in Cameroon petroleum byproduct industrial firms like GETRAM which
replaced the former foreign dominated BOSCAM. The government controlled more than 50% of
the shares of GETRAM through SNH. The Union Industries Cameroon (UIC) was responsible for
the construction of metallic sea oil platforms (Horowitz, 1986). This firm was almost entirely
controlled by a private foreign enterprise (France - Bouygues).
According to Sanyal et al., SNH does not directly participate in production operations. There are
many foreign firms involved in these under visibly clear guidelines for prescribed measures with
the government. According to the guidelines:
(i) The state's share in the case of firms with production capacity up to 5 million tons of oil is 60%,
and that of the foreign firms is 40%;
(ii) The state's share in the case of firms with a production capacity between 5 to 10 million tons of oil
is 65%, and that of foreign firms is 35%;

25
(iii)The state's share in the case of firms with a production capacity equal to or greater than 10 million
tons is 70%, and that of foreign firms is 30%.
Further works of literature explaining that Oil was produced in Cameroon by three foreign
multinationals ELF-SEREPCA (a subsidiary of ELF-AQUITAINE of France), Total Exploration
Production Cameroon (TEPCAM) (a subsidiary of Total LFP of France) and PECTÉN Cameroon
(a subsidiary of American Shell). Among these firms, ELF-SEREPCA accounts for 65% to 70%
of total oil production, while PECTÉN accounts for 25-30% and TEPLAM for less than 10%.
Baroid and Hydra-care firms involved with the quality control measures of petroleum by-products
(Bikas et al., 1990). Baroid is a foreign-dominated agency while SNH controls
Hydra-care. The first state refinery (SONARA) was inaugurated in 1981 at Pointe-Limbe on a
42hectare site about 13 km from Limbe town in the South West Province. The production which
began in 1981 consists of a refinery with a capacity to produce 2 million tons per year of crude oil,
off-shore installations and housing for the administrative unit. The refinery was of the hydro
skinning type and treated only Cameroonian crude (although it is capable of treating other types
of crude petroleum which may be supplied by SNH).
It was again indicted that the refinery produces the following products: butane, ordinary petrol,
super petrol, lighting petrol, kerosene, gas oil, and jet fuel. These products are taken to Douala by
boat and tanker and from there by truck to other parts of the country. According to a recent study,
the refinery can satisfy the needs of the nation concerning light petroleum products like ordinary
petrol, kerosene, gas oil, amongst other. The refinery was estimated to reach maximum capacity
in 1991/92. An extension of the refinery at that point will be necessary (Scott Irving, 2007). The
first extension would be a conversion unit to increase the production of petrol (ordinary and super)
while reducing that of fuel oil.

26
As oligopolies and companies of multinational corporations, they seek to maintain their levels of
retained earnings and growth through non-price competition. These oil companies aim to acquire
enough crude for their combined networks at the lowest possible cost. It is therefore to their
advantage to avoid new candidates into the industry. The oil surplus and state policy through SNH
are forcing both sides to review their contracts and to see how their related objectives of
maximizing profits, efficiency and control of the industry can lead to increased production. In
Cameroon, the official statistics on oil revenues are covered in secrecy, but it is known that oil
production itself did not begin to flow in any significant amount before 1980. As in other oil
producing countries, the government has had to play a major role in mediating the impact of oil,
since it is the re-distributor of the revenues. Consumption and investment thus depend on the state
budget. In Cameroon, oil revenues accruing to the state are earned from two sources: (i) The
revenues from production sharing, and (ii) royalties and income taxes that foreign companies pay
to the state.
SNH receives 70% of total oil production and the earnings from this are held in overseas bank
accounts, mostly in US banks. Between the years 1981 and 1985 when the US price per barrel was
relatively high (between 25 and 30 dollars per barrel) these accounts earned very high interests.
Since SNH is a self-governing public corporation, none of these revenues enter the government's
budget directly (Cossé, 2006).
However, when these revenues are deported to Cameroon to finance investment expenditures, they
enter into the government's account as extra-budgetary items Comptes Hors Budget (CHB).
Between 1980 and 1985, amounts transferred to the extra-budgetary accounts averaged onequarter
of total government revenues and in 1981 for example, extra-budgetary expenditures were almost
twice the actual investment expenditure of the government. Revenues from royalties and income

27
taxes paid to the government by oil companies are directly "budgeted" and incorporated in the
overall government expenditure planning from the very beginning. These revenues have
represented about one-quarter of budgetary revenues although the government has been able to
ensure that receipts from the oil sector amount to about 87 percent of total net revenues by
increasing or decreasing the royalties paid as the case might be.
Moreover, in the sub-national payments, Law (2007-006 of 26 Dec 2007) set out the state’s
financial system that makes the public treasury account the only collection of revenue for the state
treasury, including the territorial and local authorities as well as legal entities (Reconciliation
Report, 2011).
There was legislation which provided the mechanism of sharing the revenues from the extraction
companies from the sub-national and residents by section 89 of the mining code which
compensated the affected communities from the activities.10 percent is located to the local
population, and 15 percent allocated to the ordinary territorial jurisdiction. While in Article 2 of
Decree 2007-1139 dated 3 September 2007 stipulates an additional charge which is on corporation
tax whereby 20 percent in favour of the special fund and inter-communal intervention and 70
percent in favour of municipalities and urban communities (Oil Report, 2011).
Nurudeen, (2008) in connection to natural resource brought up arguments on growth and social
fragility. Natural resources are seen to stimulate growth in many places of the world, and these
natural resources are often found in some of the world’s most fragile social, political and ecological
regions. He went further to explain that physical resource-rich states often find themselves at the
bottom of the failed state index (Nurudeen, 2008). While from 1950-2000 over 90 percent of the
principal armed conflicts were proven to have occurred in countries containing biodiversity
hotspots biogeographic regions with a significant.

28
According to Abiodun (2011), there has been excitement surrounding the ongoing calls for
transparency and good governance in Africa countries (Abiodun, 2011). But still, these efforts,
though commendable in, will not be the factor to put to an end the conflicts that have been taking
place over resources in the African continent. And although some of these conflicts are said to be
rooted in corruption, and lack of democracy, far more significant percentage of the conflicts in the
continent have developed because the resources are not circulated and managed in ways that
benefit both the state and the population where this resource is found.
African Development Bank and the African Union Oil and Gas in Africa Development Report
(2009), on the other hand, stated that revenues which are gotten from these resources are
accumulated to the government, and by so doing, this has wiped the transparency which Abiodun
calls for. But still, the ADB calls for the interim government to practice some development actions,
to spend some of the stored revenues which have been gotten (ADB Report, 2009). Also
notwithstanding there are some arguments which are brought forth in relations to the government
failure in most cases in the spending of this stored revenue, this will, therefore, be contributed as
a failure in the side of the government policies in the oil business.
As further explained by Agarwal (2017), natural resource is not all beneficial to man in the sense
that it tends to cause well as well as bad (Agarwal, 2017). As stated in the definition given earlier,
the resource will be seen to satisfy human wants and brings human welfare. That is to say; the
resource is somewhat functional to man. The term 'functional' symbolizes useful character, such
as the capacity of satisfying human wants as he further explains.
Bongani (2012), stated ‘’Africa is a large and topographically different land mass, which has
enriched Africa with a wide range of natural resources’’. Even despite a lack of systematic
environmental mapping and survey, the vast expanse of the continent is known to contain general

29
reserves of natural resources, with great potential for mineral benefaction. In the midst of this great
wealth, Cameroon is a paradox of poverty and protracted social violence.
Cameroon is among the least developed countries of the world. More than two-thirds of the
countries in Africa are fragile and characterized by a weak governance infrastructure, little or no
aid delivery, protracted social unrest and political violence, questions about regime legitimacy,
inter-communal strife, food insecurity, economic despair, disputed border conflicts and targeted
attacks. Examples of such are the case of Somalia, the Democratic Republic of Congo (DRC),
Zimbabwe, Zambia, Congo DR, Senegal, South Sudan, Libya, Madagascar, Kenya, Egypt,
Burundi, Rwanda, Nigeria, Mauritania, and Sudan.
While on the other hand most often than not, resources turn to lead to, the destabilization of the
State Government and also the role in which the politics played in the course of the oil exploitation
(Bongani, 2012). All these exploitations are most often than not carried out to the benefit of the
State and the Exploiting multinational companies at the expense of the public. Louisa Carpenter
(2012) studies showed that the DRC Congo seems to have fallen victim to the so-called ‘resource
curse,’ a theory which argues that a higher amount of natural resources in developing nations
creates a higher risk for civil war and slower development. And she continued by elaborating that
generally, resource-rich nations are less prosperous and less competently governed, due to an
increase in domestic state corruption, a reduction of economic diversification, and reduced
investment in the human capital (Carpenter, 2012). In Congo, both the resources and the
administrator's access to them are readily available, causing mismanagement and chaos. Walter
Rodney, in his studies, explained how Europe started underdeveloped Africa earlier before the
Africans themselves did. But to a greater extent, the Africans are the ones to see their errors in
resource management and correct it if at all they want it to benefit them in time to come (Walter

30
Rodney, 2009).
Furthermore, there was also an expression of the backward development in the area of resource
potentials which was supposed to be well developed. Amindeh, (2015) brought out the number of
companies working in the field in question namely ADDAX Petroleum, Total, Texaco amongst
others and how these people have started reacting through the formation of pressure groups like
the CCN (Amindeh, 2015).
Ndzifon (2015) relate and explain the development speed in correspondence to the level of
resource availability. But in this light, he also went further to say the rich natural resource zones
or regions are always not well developed, but to an extent, the population is still neglected and kept
out of development. Meanwhile, these regions are often supposed to be well developed in respect
to its abundant resources (Ndzifon et al., 2015). This line of thinking is crucial today because most
resource-rich areas suffer from economic torture and have been noted for prolonged conflicts
which only go further to thwart the development drive of such regions. In connection with Oroko
voice, (2017) it was argued that this region of the country produces a lot when it comes to crude
oil in Cameroon. But this region with all its potentials, it has no fuel filling station, NO petroleum
depot, NO refinery. And the sole refinery is in Limbe 93 km away from Ndian and in another
division, Fako Division (oroko voice, 2016).
Chief Bisong Etahoben (2014) elaborated on the distribution and production of oil extraction in
Cameroon by the various exploitation foreign oil companies. He further explains how
underdeveloped the country is from the other recently producing oil countries like Equatorial
Guinea, Ivory Coast amongst others and how these countries have experienced a lot of
development recently from oil exploitation while relating it to the case of Cameroon it was a
different scenario (Bisong, 2014). Nevertheless, he cited the case of the suffering regions of the
oil-producing areas of Cameroon, most specifically the South-West Region.

31
Cossé study (2006), shows that in the early 1990s, the authorities boosted their supervision of the
national oil company (Société Nationale des Hydrocarbures, SNH), including over the transfer of
oil revenue to the budget. Efforts were also significantly renewed in 2005 as part of the authorities’
broader commitment to enhancing fiscal transparency and reporting in the context of the
implementation of their programs with the IMF.
Looking ahead, further steps to enhance accountability are nevertheless required to advance the
use of oil revenue and to establish economic management to meet the country’s development
priorities. Notwithstanding in large substantial oil-generated resources countries over the last 30
years, Cameroon has remained a low-income country with relatively weak social indicators. The
level of state revenue to exports depends on each country government production and
transportation costs, and the contractual conditions agreed between the government and oil
companies. In Cameroon, a significant share of the fixed costs is paid while transportation costs
from off-shore platforms are low.
As stated by Robert Engler (1963) Oil interests exert powerful political influences at both the
public and national level, but there are many diverse interest groups within the industry and these
groups rarely agree on critical issues. Various bills to eliminate state regulation of natural gas failed
to become law in spite of vigorous support by almost all segments of the industry. Nor does the
fact that the oil industry receives the major attention of the antitrust agencies signify overwhelming
political power (Engler, 1963).
2.1.2 Resource Curse Notion
Since the MID-1990s there has been a developing interest in research on the causes of civil wars.
Bannon et al., elaborated on one of the most surprising and essential findings and role natural
resources play a key role in triggering, protracting, and financing these conflicts. Conflicts have

32
been seen to be very rampant in the past years, and this has earned the name of the resource as a
curse and not a blessing because wherever this resource (like oil which was the case in Nigeria in
Delta state) is present, conflicts have always been the outcome.
Natural resources like oil are one of the minerals that contribute to most of the conflicts Africa is
going through. First, natural resources are never the only source of a conflict. Any given conflict
is brought about by a complex set of events; often poverty, ethnic or religious grievances, and
unstable governments also play significant roles. Following what David Boansi (2014) stated,
‘’many developing countries are blessed with abundant natural resources base, yet their respective
economy is seen to deteriorate rather than grow’’ (Boansi, 2014).
2.1.3 Understanding The Concept Of Corporate Social Responsible (Csr)
According to the Wikipedia, the free encyclopedia (2009), “Corporate Social Responsibility” also
called Corporate Responsibility, Corporate Citizenship, Responsible Business. Corporate Social
Opportunity is a concept whereby organizations consider the interest of the community by taking
responsibility for the repercussions of their activities on customers, suppliers, employees,
shareholders, communities, and stakeholders as well as the environment.
We cannot discuss Corporate Social Responsibility without throwing light on Community
Relations which is an area of Public Relations. We could say Community Relations is supposed to
be a set of mutually profitable business partnerships with one or more stakeholders, which improve
the company’s reputation as a good corporate citizen. Most oil companies usually claim to have
executed several projects in the host communities as part of their Corporate Social Responsibility.
These claims may include construction of hospitals, roads and schools, provision of potable water,
electricity, sponsorship, scholarships, and; supporting health campaign programs among others
(Alabi et al., 2012). However, CSR signifies more than the operation of the invisible hand; which

33
is linked to the notion that companies owe duties to their external stakeholders beyond those
preserved in the law (Spence, 2010).
Further studies had proven that most often than not these CSR are not always the desire of the
community but as such what the corporation turn to benefit more on the other hand.
Moreover, the company must not only make a profit, produce goods and services, provide jobs,
pay taxes to the state; it also has to consider the environment where it operates. Increasingly more
companies understand that CSR is not just to do good, but knowing how to do good, not only to
give something to a community but to follow a social project, to be opened to a cause of the parties
to which it relates.
In Romania, the first CSR actions were carried out in the year 1990, when some NGOs with a
humanitarian purpose were set up, founded with the support of international, public or private
institutions. While in the 2000s events were encouraged by major reforms that were a consequence
of the preparation for an agreement to the EU, thus favouring the involvement of companies with
foreign capital. They were the main driver that transferred the culture and practices of the parent
company at the local level. Responsibility practices in the business environment arose more and
more often after the agreement to the EU. Initially, these actions were seasonal and took place
during holidays without any strategies and concrete patterns.
Moreover, responsible corporate behaviour was initially assessed by considerations regarding
image, reputation or business and not regarding sustainable development and stakeholder needs.
Somewhere around (2007 – 2008), there was an adjusted to the extinction of activities at the start
of the economic crisis and due to this many CSR budgets were cut in the years (2009 -2011), but
studies show that is started to recover in 2012 and also in 2013 (Raluca Andreea 2014).

34
In the year 2013, companies that had developed CSR programs selected to the importance of
recognition and visibility, a share of 70%; 74% verbalized the CSR programs as part of a public
relations strategy. Meanwhile, 23% verbalize the involvement in CSR as a requirement of
shareholders, and 22% were required to do so by company policy. At corporate level most often
than not, the CSR initiatives focus mainly on areas such as education, environment, and community
support. Like in the case of Romania, which shows that companies operating in Romania orient
79% of their CSR programs towards education, health is allotted a share of 56%, social issues get
a share of 68 %, and 58% goes to the environment. CSR actions are not limited to investing in the
community, but also include responsibility along the supply chain, customer relations, and
employee welfare.
Studies of Sweden have proven a long history of active CSR work viewed by the pioneer within
the field of study. In 2013, Sweden top up their environmental protection (in the aspect of
recycling, sustainable use of the resource, and minimizing ecological damages through low impact
production techniques) ranks which was geared towards sustainable development and other social
and governance indicators in CSR implementation (Wahlman et al., 2017). Notwithstanding, the
government of Sweden expects all the corporations to respect human rights in all their operations.
2.1.4 The Concept of Benefit-Sharing in Extractive Corporations
The concept of benefit-sharing originated from the Convention on Biological Diversity (CBD). In
1992, and was developed further in the 2010 Nagoya Protocol, a complementary settlement to the
CBD, concerning the use of biological resources. Years past, benefit-sharing agreements have
become a deceiving occurrence, especially in the case of extractive industries. As oil, itself, and
the revenue it generates flow far beyond the extraction sites, indigenous people are excited to

35
receive dividends from resources extracted from their lands in the form of benefits as compensation
for damages to the environment (Tulaeva et al., 2017). Moreover, the term ‘benefit-sharing’
includes both monetary and non-monetary benefits that communities receive from companies.
There is always the expectation for development in the host community. And this revenue gotten
from resource wealth will be used to the benefit of the community or country citizens broadly.
Reasons being that it has been noticed that most often than not this oil exploitation has always been
to the benefit of the corporation and not the people. Here benefit-sharing is a very vital aspect to
satisfy the community people to avoid conflict or demonstration from the people. After centuries
of artisanal mining in Madagascar, in 2005 the first world-class industrial mining investment was
committed in Madagascar. The joint venture between Rio Tinto and the state (represented by
OMNIS, a public agency) started exporting ilmenite in 2009 amid considerable concern over the
collection, redistribution, and use of royalties. Madagascar’s national mining code (passed in 1999
and reviewed in 2005) allocated part of the royalties to decentralized authorities.
However, the distribution rules in the code were designed for application to small-scale and
artisanal mining and could not easily be adapted to a large-scale enterprise solution. From the
dialogue, a proposal was developed for a “Mining Community Foundation.” This dedicated
instrument was to have the following attributes: It would channel a part of the royalty stream to a
broad list of beneficiary in the community, will be endowed, with the mining company agreeing
in principle to make significant contributions to development. As well as community forum to a
community forum would be established and meet regularly with the foundation’s board to ensure
that meeting periodically is made up of community indigenes in the program decided. In Senegal,
an alternative approach to a comparable situation was chosen in Senegal, where the 2003 mining
code stipulated that “part of the fiscal revenues generated by mining operations are paid into a

36
Balancing Fund to be allocated to local authorities.” However, detailed provisions were left to
following regulations. After extensive consultation, Decree number 20091334 (November 20,
2009) clarified that 20 percent of mining revenues (taxes and royalties) would be used to create a
national equalization fund. The local authorities from the mining region would receive 60 percent
of the fund, with the remaining 40 percent being shared by other local authorities in the country.
This revenue was shared for the benefit of not only the community, but other communities also
benefited from it.
On the other hand, looking into that of Canada, benefit sharing was not only seen to be very
important to the population, but it was seen as a very vital aspect of development. Signed in 1995,
the Raglan Agreement has been used as a benchmark for First Nations agreements in the mining
industry. The Raglan mine is located in the Nunavik Territory (MBD, 2010). The agreement was
signed between the two closest communities to the mine (Salluit and Kangiqsujuaq), the Makivik
Corporation, and Raglan mine, now owned by Xstrata Nickel. The Agreement was governed by
the Raglan Committee, covering equal representation from community groups and the company
(six members in total). The profit sharing arrangement included a commitment to provide 4.5
percent of operating profit to community partners (this equated to the payment of close to C$17
million in 2007). All funds are placed in a Trust which in turns distributes 25 percent of the money
to the Makivik Corporation, 30 percent to Kangiqsujuaq, and 45 percent to Salluit, who then
allocate the funds to the fourteen communities in Nunavik based on a needs assessment.
2.1.5 State Challenges in Managing Crude Oil In Cameroon
Cameroon has committed to the privatization of its state oil company, the National Hydrocarbons
Company. SNH engages in exploration and production in conjunction with several Western oil

37
companies. SNH is the state-controlled oil producer and exploration company (Cameroon Country
Report).
Oil is a vital resource for Cameroon, as it remains the dominant economic driver and backbone of
the country. The unsustainable management of Cameroon’s oil revenue, rather than the oil
availability itself, remains the real cause of the challenges facing the economic performance of the
country. In most countries and legal regimes, oil, gas, and minerals are vested in the state (World
Bank report). Beckoning government action in one way or another to spend some of the accrued
revenues, often argued that natural resource booms usually decrease the quality of public spending
and encourage rent-seeking.
Arguably, this has become a familiar trend in crude oil countries, with following constraints on the
capacity of the country to meet its obligation of progressive realization of the social and economic
aspirations of the citizens who look up to the State for social protection. The concept of promoting
sustainable development in communities affected by mining operations has gained currency over
the past decade. This points to a muddy situation, which, for Jeffrey Herbst, is a consequence of a
particular pattern of politics that threatens even to impoverish the population and to cause a
catastrophic collapse of the social and economic structure of the country (Ekoko, 2016).
The attainment of political independence did not transform the structure of a good number of
African states, which remained forceful and authoritarian. Instead of modifying the country and
making it relevant to the needs and aspirations of the populations, some emerging post-colonial
leaders were content with using the large authoritarian structures of the state to appropriate
economic gains for private ends.
The Nigeria Extractive Industries Transparency Initiative (NEITI), was classified as the most
excellent and comprehensive of all the initiatives of engaging countries. The ''NEITI'' was launched

38
in 2004 and yielded the first-ever overall financial, physical, and process audits of Nigeria’s oil
and gas sectors for the 1999–2004 periods. Cameroon and Mauritania have appointed stakeholder
committees at the highest levels of government, drawn up action plans, and offered workshops and
training for civil society (ADB Report 2016). These two countries have also issued two reports
(www.eitransparency. org). As stated by Solomon ekoko ‘’one thing is certain, a State that fails
to see the social needs of its citizens as its ultimate priority will never be efficient, and a State
that is not efficient is a failed State’’.
According to African Development Bank Country Evaluation (African Development Bank 2009.
4-5), Cameroon has initiated major reforms to improve governance. However, severe challenges
still exist related to transparency, corruption, business environment and accountability. Cameroon
has been ranked 161:181 economies assessed in Doing Business Report regarding the ease of doing
business. Main weaknesses in Cameroon include the complexity of business environment, market
efficiency and training (Cameroon Country Report).
The African Development Bank has several projects in Cameroon (ADB, 2012). The World Bank
had 25 action plans in Cameroon in April 2012. One of the projects is the Environmental and Social
Capacity Building for the Energy Sector Project aimed at improving the management of and the
accountability for environmental and social issues related to substantial infrastructure investments.
There are also other projects related to the environment and energy.
The government relating to crude oil management has a particular amount of percentage in which
the companies pay in other to operate. From studies carried out in the EITI reconciliation report of
2011, it stated that fees are being paid to the government according to the contracts sign, and a
good example was brought up in the case of the Chad-Cameroon pipeline whereby corporate tax
is due to net profit realized from all research exploitation activities (EITI Reconciliation Report,
2011).

39
In addition to the profit paid on the realization of benefits, the involve penalties paid by the
companies in operation, and these penalties are often paid if the extracting companies go against
or violate the tax laws. Also, inspection and control fees are paid to the government especially by
companies that are dangerous to health, environment, nature, and agriculture (Jude et al., 2015).
Furthermore, the payment of this cost is made to cover the basis of the institution concern on a
scale fixed by the law (Art 22 of the /015 Act 98/7/14/98).
2.1.6 Community Challenges
The social and economic challenges confronting the society have been attributed mainly to the
unsustainable management of the revenues from oil resource (Solomon, 2016). The existence of
large (potential) rents in the natural resources sector frequently gives rise to severe debates over
their appropriate distribution. This is not only the case where the public sector wishes to tax the
profits of private operators. There also can be significant disagreements between the central
treasury and state-owned operators as to how revenue flows are managed (Sam Jones 2008). But
most often than not the communities where these resources are present, always turn to pay the price
by suffering in riches.
Even so as explained by Sam Jones (2008), it is widely agreed that the public should claim a
considerable share in natural resource rents. This is preserved in the United Nations Declaration
which affirms: “The peoples right, and nations to permanent sovereignty over their natural revenue
and resources must be exercised in the interest of their national development scheme and the
wellbeing of the people of the State concerned” (General Assembly resolution 1803, 14 December
1962).
Assembe-Mvondoa, et al., (2013) in his article ‘’Assessment of the Effectiveness, Efficiency, and
Equity of Benefit-Sharing Schemes under Large-Scale Agriculture. Lessons from Land Fees in

40
Cameroon’’ evaluate the mechanism of the distribution of land rent fees from agro-industry in
Cameroon between the State, the local council and village communities as required by the
provisions of Decree No. 76-166 of 27 April 1976 to establish the terms and conditions for the
management of national lands in Cameroon. The study came up with great lessons that are
beneficial in planning benefit-sharing mechanisms and fighting rural poverty within a context
marked by rising demand for resources in Cameroon (Assembe-Mvondoa, 2013). But it was
concluded that the mechanism for land rent redistribution is unsuccessful, unproductive, and
unbalanced to the reorganization of the current system in Cameroon (Memuna, 2014).
2.2 Theoretical Framework
The functional theory of resources (a dynamic concept) by Prof. Zimmermann, shows a
considerable controversy about the meaning and definition of resources. The exponent of old and
static school hold that natural phenomena are all resources. They are already in the realm of nature
and are fixed or static. Resources are not made or created. The man by his intelligence and skill
has simply developed some of those (natural) resources making them suitable for human use, and
the rest of the (natural) resources are still left undeveloped.
To this old school of thinkers, resource means nature. Natural things good or bad, useful or
ineffective are all resources. To them the hydro-electric potentiality of the Congo River and the
coniferous forest belt on the higher slopes of the Himalayas are all resources, even though, there
is little chance of these being used under the present socio-economic condition of the countries
concerned (Congo and India). This view about resources without any reference to their functional
aspects is not acceptable to modern thinkers (Agarwal, 2011). Prof. Zimmermann and other
supporters of contemporary school hold that resources bring human welfare.

41
1. Natural phenomena are not all beneficial to man. In nature, there are floods, earthquakes, storms,
poisons, etc. which hinder human progress and welfare. These are not to be" treated as resources.
2. Resources are not confined to nature alone. There are human resources and cultural resources as
well. A healthy society, scientific knowledge, technological skill, etc., can bring welfare to man
and are probably resources.
3. the most significant specialty of the modern thinkers is that they believe in the Functional Theory
of Resource, which entails that; (a) Resource is functional and operational. (b) It is made or created
by efforts of man, and (c) It is dynamic and not static.
As stated in the definition given earlier, resource satisfies human wants and brings human welfare.
That is to say; the resource is something functional to man. The term 'functional' denotes useful
character, that is, the capacity of satisfying human wants.
A natural phenomenon which can satisfy human wants is functional and so a resource. The
sunshine which helps our organic growth the air which we breathe, the solid earth on which we
stand, is automatically resources. They are functional in their original state and forms. But most of
the natural things, examples such as minerals, soils, rivers, waterfalls, forests, etc., did not possess
their functional capacity in their initial state. As long as coal mineral was unknown to man and
was lying underground, it had all its inherent qualities, but it was not functional to man. Nikhil
went further to explain that It was then a 'neutral staff and not a resource. It acquired its functional
capacity when a man by his efforts discovered it and learned the art of putting it into various uses.
Capitalism as one of the theory is a system of largely private ownership that is open to new ideas,
new firms and new owners in short, to new capital. Capitalism’s rationale to proponents and critics
alike has long been known to be innovative and, more important, its selectiveness in the
innovations it tries out. While still, capitalism is also known for its tendency to generate instability,

42
often associated with the existence of financial crises, job vulnerability, and failures to include the
disadvantaged (CCSC, 2014).
Resources were defined as a means of achieving given ends that is individual wants and social
objectives. Also, Means take their meaning from the ends which they serve. As ends change, means
must change. This statement of Zimmermann states that resource creation is a function of space
and time. With increasing, knowledge function resource may improve. A simple man may not be
able to connect resource from a substance, but a supra, animal man may bring out the differences;
by scientific medias touch will be able to transform such pure substance into a precious resource
(Marx and Engels 1998).
Tropical Africa is well endowed with enormous water resource. Due to the recessive economy and
technological shortcomings, inhabitants of the region cannot convert it into energy. So Wesley C.
Mitchell had aptly said: incomparably most magnificent among human resource is knowledge. So
with the understanding of man and operational process, the resource is dynamically created.
Two early conflict theorists were the Polish-Austrian sociologist and political theorist Ludwig
Gumplowicz (1838–1909) and the American sociologist and paleontologist Lester F. Ward (1841–
1913). Although Ward and Gumplowicz developed their theories independently, they had much in
common and approached conflict from a comprehensive anthropological and evolutionary pointof-
view as opposed to Marx's somewhat exclusive focus on economic factors (Marx et al., 1998).
Gumplowicz, in Grundriss der Soziologie (Outlines of Sociology, 1884), describes how the
conflict between cultures and ethnic groups has shaped civilization. Gumplowicz theorized that
large complex human societies evolved from the war and conquest. The winner of war would
enslave the losers; eventually, a complex caste system develops (Irving, 2007).

Crude oil exploitation and empowerment of host communities in cameroon

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