CONSENSUAL TAXATION WITHOUT INSTITUTIONAL DEVELOPMENT: THE CONTRADICTION OF BRITISH COLONIAL TAXATION IN BENIN (NIGERIA), 1897-1945

Abstract

The British conquest of Benin in 1897, and the imposition of colonial rule brought Benin under British colonial administration. The means by which the colonial government financed their expenditure was the imposition of taxes. The system of taxation or its process was organized around the colonial power and its ability to negotiate with the colonized. This leads to a consideration of the political dimension of colonial taxation in Benin. This study argues the British utilized the indigenous traditional authorities to legitimize its tax policies. Under this condition, the traditional chiefs or representatives were placed in charge of tax collection. The traditional hierarchy motivated by the huge salaries they obtained from the administration collaborated with the imperialists to exact wealth from the people. This enabled the British to generate enough revenue to sustain their administration. Thus, contrary to the argument that British colonial taxation was modern and progressive, the absence of strong institutions especially in the Weberian sense made the system regressive. This study found out that the colonial bureaucracy revolved around the British Officers with illiterate traditional chiefs acting as implementers. Despite the clamor for political participation by the educated elements, the British admitted only a few into the administration. Thus, unlike the experience in Europe and America where taxation led to representative politics and a professional bureaucracy, the Benin example showed the appeal to tradition as a means of legitimizing tax policies. The study concludes that the failure of the British to establish effective public institutions for tax formulation and mobilization has had long term consequences for the economic and political development of the area.