Project – The Transformation of Traditional Market Institutions Under Colonial and Post-Colonial Economic Policies: A Study of Oja-Oba Market, Ilorin, Kwara State.

CHAPTER ONE

THE TRANSFORMATION OF TRADITIONAL MARKET INSTITUTIONS UNDER COLONIAL AND POST-COLONIAL ECONOMIC POLICIES: A STUDY OF OJA-OBA MARKET, ILORIN, KWARA STATE

1.1 Background to the Study

Markets have historically served as important economic, social and institutional centres in African societies. Beyond their function as places where goods and services are exchanged, traditional markets have provided platforms for social interaction, information sharing, cultural activities, community organisation and the regulation of commercial relationships. In many pre-colonial African communities, markets operated through established customs, traditional authorities, occupational associations and informal rules that governed trading activities. These arrangements determined market days, trading spaces, relationships between buyers and sellers, methods of resolving disputes, payment of market dues and the responsibilities of market leaders. In Yoruba society, traditional markets were often closely associated with the authority of the traditional ruler, while recognised market leaders, including the Iyaloja and other representatives, played important roles in organising traders and maintaining order. Sudarkasa (1973), in her study of Yoruba women in the marketplace, demonstrates the important position occupied by women in traditional trading systems and the organisation of commercial activities. Similarly, Ogunremi (1998) explains that traditional Yoruba markets were connected to political authority, social organisation and community life. These historical arrangements show that traditional markets were not simply commercial locations; they were institutions embedded in the political, cultural and economic structures of their societies.

In pre-colonial Ilorin, commercial activities contributed significantly to the development of the emirate and its relationships with neighbouring communities and wider trading networks. Ilorin occupied an important position in regional commerce, attracting traders and producers involved in the exchange of agricultural products, livestock, textiles, household goods and other commodities. The organisation of commerce involved producers, merchants, intermediaries, political authorities and other actors whose activities supported the movement and distribution of goods. Banwo (1998), in his study of the Ilorin economy in the nineteenth century, explains that the productive and exchange sectors of the economy had developed considerably by the 1860s, while the volume of goods entering the town had increased. Danmole (1990) also identifies the economy as an important factor in promoting intergroup relations and social integration in nineteenth-century Ilorin. Furthermore, Suleiman (2018) argues that indigenous producers, merchants and commercial agents played important roles in the political-economic relations of pre-colonial Ilorin. These studies establish that Ilorin possessed an established commercial culture before colonial rule, making the history of its traditional markets important for understanding the subsequent transformation of economic institutions in the town.

The establishment of British colonial administration introduced significant changes into the economic and administrative structures of Nigerian societies, including the institutions responsible for organising trade and local commerce. Colonial economic policies were largely designed to integrate local economies into international capitalist trade through the production and exportation of raw materials, the importation of manufactured goods, taxation and the expansion of transport infrastructure. These policies affected traditional markets by changing the types of goods traded, the movement of commodities, the sources of commercial capital and the relationship between local traders and external commercial interests. Forrest (1981) explains that colonial economic policies expanded commodity production and reorganised economic relationships through taxation, monetisation and the development of transport and communication networks. Adewara (2021) similarly argues that colonial rule transformed Nigeria’s economy by promoting export-oriented commerce, expanding inland trade and encouraging the use of cash in economic transactions. Falola (2024) also observes that colonial economic arrangements promoted commercial infrastructure and resource extraction while giving considerable advantages to British commercial interests. These developments suggest that colonial rule did not merely introduce new goods and trading opportunities; it also altered the institutional environment within which traditional markets operated.

The transformation of traditional markets during colonial rule was also connected to changes in market administration, taxation and the authority of indigenous institutions. Before colonial intervention, traditional rulers and recognised market leaders often exercised considerable influence over market organisation, the allocation of trading spaces, the collection of dues and the settlement of commercial disputes. Colonial governments increasingly introduced formal administrative structures through native authorities, local councils, ordinances and market regulations. These changes sometimes reduced the independent authority of traditional market institutions or placed their activities under government supervision. Nwankwo (2019), in her study of women traders and institutions in Oke-Arin Market, Lagos, explains that traditional Yoruba markets were historically associated with the authority of rulers and women market leaders, but colonial market administration increasingly transferred formal control to municipal authorities. Her account identifies the Market Ordinance of 1949 as an important development in the transfer of market management powers to city councils in the Western Region. Sakariyau and Yusuf (2023), in their study of colonial conquest and the decline of Gambari Market in Ilorin Emirate, also demonstrate how colonial conquest and the integration of Ilorin’s economy into the wider metropolitan economy affected established commercial relationships and indigenous market structures. These developments provide a historical basis for examining how colonial administrative policies influenced traditional market institutions in Ilorin.

Following Nigeria’s independence in 1960, market institutions continued to experience changes arising from government economic policies, urban development, commercial regulation and the expansion of formal economic structures. Although political independence created opportunities for indigenous participation in economic administration, post-colonial governments retained and modified several administrative arrangements inherited from colonial rule. Local government authorities became increasingly important in the establishment, maintenance and regulation of markets, while state governments introduced policies concerning market infrastructure, revenue collection, sanitation, trading permits and commercial development. These developments affected the relationship between traditional market leaders, trader associations and government officials. At the same time, urbanisation and population growth increased demand for trading spaces and commercial services. The experience of Ilorin illustrates this interaction between inherited institutions and post-independence market development. Historical accounts of the Ilorin Emirate economy identify the continued importance of local government involvement in market administration, including the development of Pata Market in 1973 as part of efforts to reduce congestion at Oja-Oba. Such developments indicate that post-colonial market policies have influenced the physical organisation, administrative responsibilities and commercial relationships of traditional markets.

Economic reforms introduced in Nigeria during the 1980s and subsequent decades further influenced the structure of traditional markets and the activities of traders. The Structural Adjustment Programme (SAP), introduced in 1986, involved measures such as currency devaluation, trade liberalisation, reduction of public expenditure, privatisation and the encouragement of private-sector participation. These reforms affected purchasing power, the cost of imported goods, access to commercial credit, employment patterns and the survival strategies of small-scale traders. As economic conditions changed, more individuals entered informal trading activities, while established traders had to adjust their sources of supply, pricing practices and business relationships. Omobowale (2019), in her study of Bodija Market in Ibadan, demonstrates how the implementation of SAP contributed to the entry of former government workers into market trading and subsequently changed the class structure and leadership arrangements within the market. Similarly, Akpan and Cascant-Sempere (2022) show that taxation and formalisation policies in Nigerian informal markets can have different effects on traders, particularly women, depending on their economic positions and institutional relationships. These findings suggest that post-colonial economic policies have not only affected the financial activities of traders but have also influenced leadership, representation and the distribution of authority within traditional market institutions.

Traditional market institutions have also adapted to changing economic conditions through the development of trader associations, informal credit arrangements, commercial networks and new forms of market leadership. Although government regulations may influence market administration, informal institutions continue to perform important functions by establishing trust, facilitating access to credit, regulating relationships and helping traders manage commercial risks. Lyon and Porter (2009), in their study of market institutions, trust and norms in Nigerian food systems, explain that informal market arrangements such as trader associations, commission agents and personal credit relationships help sustain commercial transactions where formal institutions are inadequate. Nwankwo (2019) also demonstrates that market institutions remain sites of negotiation and contestation involving gender, leadership and government influence. These observations indicate that the transformation of traditional markets should not be understood simply as the disappearance of indigenous institutions and their replacement by modern administrative structures. Rather, it involves the interaction, adaptation and sometimes conflict between traditional authorities, government agencies, trader associations and changing commercial interests. In this context, Oja-Oba Market in Ilorin provides an important setting for examining the continuity and transformation of traditional market institutions under colonial and post-colonial economic policies.

Oja-Oba Market occupies an important position in the commercial and historical environment of Ilorin, making it a relevant case for investigating the relationship between traditional market institutions and changing government economic policies. Its significance extends beyond the exchange of goods to questions concerning market leadership, the organisation of traders, the regulation of commercial activities, revenue collection, trading relationships and the preservation of traditional market practices. The historical development of markets in Ilorin, the colonial restructuring of local commerce and post-independence government involvement in market administration provide a wider context for understanding changes in Oja-Oba. Existing historical studies have examined the Ilorin economy, the decline of Gambari Market and the development of market administration in the emirate, while broader Nigerian studies have investigated the influence of economic reforms, taxation and formalisation on traditional market institutions (Banwo, 1998; Sakariyau & Yusuf, 2023; Akpan & Cascant-Sempere, 2022). However, the specific institutional transformation of Oja-Oba Market across the colonial and post-colonial periods requires focused investigation. This study therefore examines how colonial and post-colonial economic policies influenced the authority, organisation, administration and commercial practices of Oja-Oba Market, as well as the ways traditional market institutions have adapted to changing economic and political conditions.

1.2 Statement of the Problem

Traditional markets historically operated through indigenous institutions that regulated commercial activities, maintained trading relationships, allocated market spaces and provided systems for resolving disagreements among traders. In Ilorin, commercial activities developed within an established political and social structure in which traditional authorities, merchants, producers and intermediaries played important roles. However, colonial administration introduced new economic and administrative arrangements that altered the relationship between traditional authorities and commercial institutions. The introduction of formal taxation, market regulations, native authority administration and colonial commercial policies changed the environment in which indigenous markets operated. Sakariyau and Yusuf (2023), in their examination of Gambari Market in Ilorin Emirate, demonstrate that colonial conquest and the integration of Ilorin into the metropolitan economy affected established commercial relationships and contributed to the decline of an important traditional market. The problem, therefore, concerns the extent to which colonial economic and administrative policies changed the authority, organisation and commercial functions of traditional markets in Ilorin, and how these changes affected the continuity of indigenous market institutions. Although the historical experience of Gambari Market has received scholarly attention, the institutional transformation of Oja-Oba Market requires more specific examination.

Another problem concerns the changes introduced by post-colonial governments in the administration and regulation of traditional markets. Following independence, local and state governments increasingly became involved in market development, revenue collection, allocation of trading spaces, sanitation, infrastructure provision and commercial regulation. While these interventions were intended to improve market administration and generate public revenue, they also influenced the responsibilities and authority of traditional market leaders and trader associations. The development of Pata Market in 1973, partly to reduce congestion at Oja-Oba, illustrates how government decisions and urban planning influenced the organisation of commercial spaces in Ilorin. Historical accounts of the Ilorin Emirate economy also identify the importance of local government involvement in market administration and revenue generation. However, the extent to which these interventions strengthened market institutions or weakened traditional systems of leadership, representation and regulation remains an important issue requiring investigation.

Furthermore, post-colonial economic reforms and the expansion of the informal economy have created additional challenges for traditional market institutions. Policies relating to trade liberalisation, taxation, currency changes, market formalisation and private-sector participation have influenced traders’ operating costs, access to credit, commercial networks and organisational arrangements. These changes may create tensions between government authorities and traders, particularly where revenue demands, market regulations or the allocation of trading spaces are perceived as unfair. They may also affect the position of traditional market leaders, including the extent to which they represent traders or exercise authority over market activities. Omobowale (2019) demonstrates that economic restructuring under SAP influenced the leadership and class relations within Bodija Market, while Akpan and Cascant-Sempere (2022) identify gender-related inequalities associated with taxation and formalisation policies in Nigerian informal markets. Although these studies provide important insights into market transformation elsewhere in Nigeria, the specific ways in which such economic policies have affected the institutional arrangements and trader relationships at Oja-Oba Market remain insufficiently understood.

The central problem addressed by this study is the limited historical and institutional understanding of how Oja-Oba Market has transformed under colonial and post-colonial economic policies. Existing literature provides information on the pre-colonial economy of Ilorin, the colonial decline of Gambari Market, the administration of Nigerian markets and the effects of post-colonial economic reforms on informal traders. However, these studies do not provide a comprehensive account of the changes in Oja-Oba Market’s traditional leadership structures, trader associations, administrative practices, commercial relationships and institutional functions across the colonial and post-colonial periods. Without such an examination, it is difficult to understand which traditional practices have survived, which have changed, and how government economic policies have influenced the balance between indigenous authority and formal market administration. This study therefore investigates the historical transformation of Oja-Oba Market, with particular attention to the influence of colonial and post-colonial policies on its institutional structure, the adaptation of traditional market practices and the challenges confronting the market in the contemporary period.

1.3 Objectives of the Study

The general objective of this study is to examine the transformation of traditional market institutions under colonial and post-colonial economic policies, using Oja-Oba Market in Ilorin, Kwara State, as a case study.

The specific objectives are to:

1. Examine the historical structure, organisation and functions of traditional market institutions in Oja-Oba Market before and during colonial rule.

2. Investigate the influence of colonial economic and administrative policies on the leadership, organisation and commercial activities of Oja-Oba Market.

3. Assess the effects of post-colonial economic policies and government market regulations on the institutional structure and trading activities of Oja-Oba Market.

4. Examine the continuity, transformation and challenges of traditional market institutions in Oja-Oba Market in the contemporary period.

1.4 Research Questions

The following research questions will guide the study:

1. What were the historical structures, organisation and functions of traditional market institutions in Oja-Oba Market before and during colonial rule?

2. How did colonial economic and administrative policies influence the leadership, organisation and commercial activities of Oja-Oba Market?

3. What were the effects of post-colonial economic policies and government market regulations on the institutional structure and trading activities of Oja-Oba Market?

4. What traditional market institutions have continued, changed or faced challenges in Oja-Oba Market in the contemporary period?

1.5 Research Hypothesis

The following null hypothesis will be tested in the study:

H₀: There is no significant relationship between government economic and market-administration policies and the transformation of traditional market institutions in Oja-Oba Market, Ilorin.

1.6 Significance of the Study

This study will be significant to traditional market leaders, traders, government authorities, historians, economic policymakers, researchers and the general public. It will provide historical and institutional insights into the transformation of traditional markets under changing political and economic conditions, with particular reference to Oja-Oba Market in Ilorin.

Traditional market leaders: The study will provide useful information to traditional market leaders, including the Iyaloja, Babaloja, market representatives and other recognised authorities. It will help them understand how their historical responsibilities and institutional authority have changed under colonial and post-colonial administration. The findings may also assist them in identifying ways to preserve useful traditional practices while adapting to contemporary market-management requirements.

Traders and trader associations: The study will help traders understand the historical development of the institutions that regulate their commercial activities. It may provide insights into the evolution of trader associations, market leadership, informal credit arrangements, dispute settlement and relationships between traders and government authorities. It may also encourage greater participation in decisions affecting market administration and traders’ welfare.

Government and policymakers: The findings will provide historical and institutional information to government authorities responsible for market administration, commercial regulation and urban development. The study may assist policymakers in developing market policies that recognise the importance of indigenous institutions while improving infrastructure, revenue administration, sanitation and commercial regulation. It may also encourage consultation with traders and traditional market leaders before implementing policies that affect market activities.

Historians and economic researchers: The study will contribute to the historical understanding of Ilorin’s commercial development and the transformation of traditional economic institutions. It may provide useful information for researchers examining colonial economic policies, post-colonial economic reforms, indigenous institutions, urban commercial development and the history of markets in Nigeria.

Students and academic institutions: The study will serve as a reference material for students and scholars in History, Economics, Sociology, Political Science, Business Administration and related disciplines. It will provide a case study for understanding the relationship between traditional institutions, economic policies and institutional change.

The general public: The study will increase awareness of the historical importance of traditional markets as centres of commerce, social interaction and community organisation. It may also encourage the preservation of valuable indigenous market practices and a better understanding of the contributions of traders and traditional market institutions to the economic development of Ilorin.

1.7 Scope of the Study

The study focuses on the transformation of traditional market institutions under colonial and post-colonial economic policies, using Oja-Oba Market in Ilorin, Kwara State, as its case study.

Geographically, the study is limited to Oja-Oba Market in Ilorin. The research will consider the market’s historical and contemporary importance within the commercial environment of Ilorin and its relationship with the traditional and formal institutions responsible for market administration.

Historically, the study examines developments across three broad periods: the pre-colonial background of traditional market organisation, the colonial period and the post-colonial period. The pre-colonial background will provide an understanding of the indigenous commercial institutions that existed before colonial intervention. The colonial period will focus on the influence of colonial economic and administrative policies, including taxation, market regulation and the restructuring of local commercial activities. The post-colonial period will examine government economic reforms, market development, revenue collection, formalisation, urbanisation and changes in trader organisation.

In terms of content, the study will concentrate on market leadership, traditional authority, trader associations, allocation of trading spaces, commercial relationships, market regulation, revenue collection and the adaptation of indigenous institutions. It will also examine the continuity and challenges of traditional market institutions in the contemporary period. The study will not attempt to provide a general history of every market in Ilorin or Nigeria; its central focus will remain Oja-Oba Market.

1.8 Operational Definition of Terms

Traditional Market Institutions: Indigenous structures, customs, leadership arrangements and informal rules historically used to organise trading activities, regulate commercial relationships and maintain order within traditional markets.

Market Institutions: The formal and informal rules, organisations, leadership structures and practices that govern the operation, administration and commercial relationships within a market.

Colonial Economic Policies: Economic and administrative measures introduced by British colonial authorities to regulate production, trade, taxation, labour, infrastructure and commercial activities in Nigeria during colonial rule.

Post-Colonial Economic Policies: Economic policies introduced by Nigerian governments after independence in 1960, including trade liberalisation, taxation, market regulation, economic restructuring and private-sector development.

Institutional Transformation: The process through which the structure, authority, responsibilities, rules and practices of an institution change over time in response to political, economic and social developments.

Oja-Oba Market: The traditional market in Ilorin, Kwara State, which serves as the specific geographical and institutional focus of this research.

Market Leadership: The recognised authority and responsibilities exercised by traditional market leaders and representatives in organising traders, maintaining order and representing commercial interests.

Iyaloja: A recognised female market leader traditionally associated with the organisation, representation and coordination of traders, particularly women, within a market.

Babaloja: A recognised male market leader who may represent traders and participate in the organisation and administration of market activities.

Trader Associations: Organised groups of traders established to represent members’ interests, coordinate commercial activities, address common challenges and participate in market administration.

Market Regulation: Rules and administrative measures used by traditional authorities or government institutions to control trading activities, market spaces, revenue collection, sanitation and commercial conduct.

Market Formalisation: The process through which informal market activities and institutions become increasingly subject to official registration, taxation, licensing, regulation and government supervision.

Structural Adjustment Programme (SAP): A set of economic reforms introduced by the Nigerian government in 1986 to restructure the economy through measures such as trade liberalisation, currency devaluation, reduction of public expenditure and encouragement of private-sector participation.

Market Administration: The management and coordination of market activities, including the allocation of trading spaces, collection of revenue, maintenance of facilities, regulation of traders and enforcement of market rules.

Project – The Transformation of Traditional Market Institutions Under Colonial and Post-Colonial Economic Policies: A Study of Oja-Oba Market, Ilorin, Kwara State.