Indirect rule is a system of government used by the British and French to control parts of their colonial empires, particularly in Africa and Asia, through pre-existing local power structures. These dependencies were often called "protectorates" or "trucial states". By this system, the day-to-day government and administration of areas both small and large was left in the hands of traditional rulers, who gained prestige and the stability and protection afforded by the Pax Britannica, at the cost of losing control of their external affairs, and often of taxation, communications, and other matters, usually with a small number of European "advisors" effectively overseeing the government of large numbers of people spread over extensive areas.
Some British colonies were ruled directly by the Colonial Office in London, while others were ruled indirectly through local rulers who are supervised behind the scenes by British advisors. In 1890 Zanzibar became a protectorate (not a colony) of Britain. Prime minister Salisbury explained his position:
The Princely States of India were ruled indirectly. So too was much of the West African holdings.
The ideological underpinnings, as well as the practical application, of indirect rule in Kenya and Nigeria is usually traced to the work of Frederick Lugard, the High Commissioner of the Protectorate of Northern Nigeria from 1899 to 1906. In the lands of the Sokoto Caliphate, conquered by the British Empire at the turn of the century, Lugard instituted a system whereby external, military, and tax control was operated by the British, while most every other aspect of life was left to local pre-British aristocracies who may have sided with the British during or after their conquest. The theory behind this solution to a very practical problem of domination by a tiny group of foreigners of huge populations is laid out in Lugard's influential work, The Dual Mandate in British Tropical Africa.