The legitimate trade in commodities attracted a number of rough-hewn British merchants to the Niger River, as well as some men who had been formerly engaged in the slave trade but who now changed their line of wares. The large companies that subsequently opened depots in the delta cities and in Lagos were as ruthlessly competitive as the delta towns themselves and frequently used force to compel potential suppliers to agree to contracts and to meet their demands. The most important of these trading companies, whose activities had far-reaching consequences for Nigeria, was the United Africa Company, founded by George Goldie in 1879. In 1886 Goldie's consortium was chartered by the British government as the Royal Niger Company and granted broad concessionary powers in "all the territory of the basin of the Niger." Needless to say, these concessions emanated from Britain, not from any authority in Nigeria.

The terms of the charter specified that trade should be free in the region--a principle systematically violated as the company strengthened its monopoly to forestall French and German trade interests. The company also was supposed to respect local customs "except so far as may be necessary in the interests of humanity." The qualifying clause was aimed at slavery and other activities categorized as "barbarous practices" by British authorities, and it foreshadowed the qualifications applied to noninterference as a guide to official policy when Britain assumed formal colonial responsibility in Nigeria.

Meanwhile, the Royal Niger Company established its headquarters far inland at Lokoja, from where it pretended to assume responsibility for the administration of areas along the Niger and Benue rivers where it maintained depots. The company interfered in the territory along the Niger and the Benue, sometimes becoming embroiled in serious conflicts when its British-led native constabulary intercepted slave raids or attempted to protect trade routes. The company negotiated treaties with Sokoto, Gwandu, and Nupe that were interpreted as guaranteeing exclusive access to trade in return for the payment of annual tribute. Officials of the Sokoto Caliphate considered these treaties quite differently; from their perspective, the British were granted only extraterritorial rights that did not prevent similar arrangements with the Germans and the French and certainly did not surrender sovereignty.

Under Goldie's direction, the Royal Niger Company was instrumental in depriving France and Germany of access to the region. Consequently, he may well deserve the epithet "father of Nigeria," which imperialists accorded him. He definitely laid the basis for British claims.

Data as of June 1991