All through the 19th century, palm oil was highly sought-after by the British, for use as an industrial lubricant for machinery. Remember that Britain was the world’s first industrialised nation, so they needed resources such as palm oil to maintain that.
Palm oil, of course, is a tropical plant, which is native to the Niger Delta. Malaysia’s dominance came a century later. By 1870, palm oil had replaced slaves as the main export of the Niger Delta, the area which was once known as the Slave Coast. At first, most of the trade in the oil palm was uncoordinated, with natives selling to those who gave them the best deals. Native chiefs such as former slave, Jaja of Opobo became immensely wealthy because of oil palm. With this wealth came influence.
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However, among the Europeans, there was competition for who would get preferential access to the lucrative oil palm trade. In 1879, George Goldie formed the United African Company (UAC), which was modelled on the former East India Company. Goldie effectively took control of the Lower Niger River. By 1884, his company had 30 trading posts along the Lower Niger. This monopoly gave the British a strong hand against the French and Germans in the 1884 Berlin Conference. The British got the area that the UAC operated in, included in their sphere of influence after the Berlin Conference.
When the Brits got the terms they wanted from other Europeans, they began to deal with the African chiefs. Within two years of 1886, Goldie had signed treaties with tribal chiefs along the Benue and Niger Rivers whilst also penetrating inland. This move inland was against the spirit of verbal agreements that had been made to restrict the organisation’s activities to coastal regions.