In a significant historical event that reshaped Nigeria's future, the British government acquired the territory for £865,000 from the Royal Niger Company in 1899. This sale was driven by intense competition for resources, notably palm oil, which had become critical to Britain's industrial economy.
The Niger Delta, a region rich in palm oil, had shifted commercially from a focus on the slave trade to palm oil exports by the 1870s. Local leaders like Jaja of Opobo, a former slave who rose to prominence as a wealthy merchant, played crucial roles in negotiating trade deals. However, the newfound interest from foreign powers attracted not only traders but also opportunistic entrepreneurs. Among them was George Goldie, a British businessman who founded the United African Company (UAC) in 1879.
Goldie’s company quickly established dominance in the region, creating a monopoly by the mid-1880s and gaining control over the Lower Niger River. This dominance was solidified at the 1884 Berlin Conference when Britain claimed the territory, circumventing the agreements made with local leaders. The UAC later evolved into the Royal Niger Company, which was granted a royal charter empowering it to govern the region.
Despite the appearance of trade partnership, the reality was starkly different; local chiefs found themselves under restrictive contracts, often written in English and difficult to comprehend. Jaja of Opobo, who attempted to export palm oil independently, met a tragic fate after his exile, raising alarm among other local leaders.
King Koko of Nembe, another notable figure who ascended to power in 1889, actively resisted the Royal Niger Company's encroachment. Frustrated by the monopolistic practices that barred him from previous markets, Koko sought to forge alliances with other powers and eventually staged a pre-dawn raid on the company's headquarters in 1895, seizing hostages and resources.
The conflict escalated into the Brass Oil War, which turned public opinion in Britain against the Royal Niger Company. In a dramatic turn, the British Royal Navy retaliated against Koko's forces, leading to widespread devastation.
As a result of the growing discontent and public pressure, the British government revoked the Royal Niger Company's charter in 1899. Consequently, the company sold its territorial claims and holdings to the government for £865,000—equivalent to approximately £46.4 million today.
This transaction marked the beginning of a new colonial era for Nigeria, illustrating a time when commerce intertwined deeply with imperial ambitions, leading to the loss of autonomy for local leaders and the establishment of British colonial rule over Nigeria.
