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Abstract: This article examines processes of economic inclusion in divided societies, with a focus on both religious and formal–informal divides. Drawing on recent fieldwork in the northern Nigerian cities of Kano and Kaduna, the article challenges the assumption that identity-based informal organization intensifies violent social divisions, and that taxation and linkages with the state foster more stable and inclusive governance. A range of informal sector activities provides insights into escalating religious conflict and uneven patterns of formal inclusion in interreligious relations. Attention is focused on the relative role of informal institutions and formal interventions such as taxation in diffusing or exacerbating conflict at the grassroots level.
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