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I didn't find them right away either; I immediately went to their Dungeon, but I had to retreat due to a lack of strength. And the Nagas didn't bother me too much. I had both an Orc and Sandor leveled up; I used Sandor to clear the map, and I stationed the Orc in the main city to guard it. Without an army, though. He has a very high movement range – covering half the map! And I built both teleportation spells in the city. In case of danger, we teleport; if needed, we transfer the army from one to the other and teleport the second one to the fort that the Nagas are attacking. And that's it, seppuku for the Sanctuary!
As a result, I gained almost two dynasty ranks and upgraded two weapons from level 4 to level 5. Honestly, this even smells like imbalance. I haven't even finished the first Campaign, and I've already almost reached platinum dynasty level. The only problem is that I won't have anything to buy food with >_<