This paper examines how the growth of Islamic literacy and the Muslims participation in Western education were influenced since 1893 to 1960 when the British authorities compelled to agree whit establishing and improving the Muslim educational institutions and so the schools promoted Islamic culture and thought as well as Arabic language. They maintained regulation and control of the structure, curriculum and teachers of the school. It seems that the schools promoted religious pluralism among the various religious groups in Ibadan. The study also notes that the British did not support Islamic groups financially to build their school and suggesting that the genuine interest in reducing the imbalance between western education among Muslims and Christians in Ibadan is in doubt.