Ali was a great-grandson of Uthman dan Fodio, grandson of Muhammed Bello and son of Aliyu Babba.
[1] Prior to becoming Sultan, Ali held the title of Sarkin Sudan and lived at a ribat in the town of Shinaka.
Some settlements were re-organized and expanded during this period, marafa Maiturare developed Gwadabawa, a quarter north of Sokoto and brought together a commendable force.
Vizier Muhammad Bukhari, Sarkin Kaya and the local ruler of Bakura, expanded settlements in the eastern region of Zamfara.
According to George Goldie, Sokoto agreed to give the Royal Niger Company exclusive trade privileges within its domain, and entire rights to the country on both sides of the River Benue, in return for a yearly subsidy of three thousand bags of cowrie shells.