Polycentric governance arises spontaneously from overlapping decision centers shaped by sociocultural rules that structure collective action. Often praised as a remedy for authoritarianism and a pathway to liberty, its operation in non-western contexts with shared institutional heritages remains understudied. This chapter examines two Yoruba communities in Nigeria—Abeokuta and Ile-Ife—to assess how sociocultural rules influence the fit between neighborhood associations and multilevel service provision. Guided by Hayek’s and Smith’s theories of spontaneous order and the Ostroms’ design principles, the study draws on 2004 fieldwork to analyze institutional dynamics. Abeokuta’s inclusive traditions foster cooperative interactions that sustain collective service provision, while Ile-Ife’s landlord-tenant divide entrenches exclusion, separatism, and conflict. The findings challenge universal calls to revive African institutional traditions wholesale, showing that governance outcomes hinge on the specific rules communities adopt. By highlighting institutional variation, the study enriches empirical and theoretical understandings of how polycentric governance evolves across diverse social environments.