The treaty that formally established Ibadan as a British Protectorate was a critical step in the British colonial expansion in Nigeria. Fijabi, the reigning Baale of Ibadan, recognized the growing influence of British powers in the region and engaged in negotiations with Governor George C. Denton, who represented British interests in Lagos. The negotiations were largely motivated by the desire for peace and security amidst local rivalries and conflicts, as Ibadan was a thriving center of trade and military power in the Yoruba hinterland. By signing this treaty, Fijabi sought to secure British support against potential rivals, including the powerful Oyo Empire, and to promote stability that would benefit trade and social order in the diverse community of Ibadan.

The treaty had far-reaching implications for the political landscape of southwest Nigeria as it solidified British control, paving the way for a more extensive colonial administration. The agreement not only secured Ibadan's allegiance to British interests but also showcased the complexities of local governance in the face of imperial ambitions. Through this treaty, the British could impose their influence more effectively and integrate the region into their colonial economy. Simultaneously, local leaders like Fijabi had to navigate the challenges of maintaining power and authority under a looming colonial presence. The event marked the beginning of a new era of colonial governance in the region, reshaping the socio-political structures of the time.