One defining characteristic of administration in Northern Nigeria Protectorate was the inclusion of chiefs and emirs as "native authorities" fitting into British administration. Taxation proved very difficult in the protectorate for the first years of British rule. Lugard's attempts to institute poll taxes were foiled by the Emirates, the need to introduce coin controversy and attempts to tax trade were opposed by powerful merchants. This created a substantial deficit in the budget of the Protectorate and public works projects had to be paid by grants from the British Empire. As a result, the British often had significant shortages of British personnel before 1907. These pragmatic concerns resulted in incorporation of the traditional authorities within the British structure.