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After the missionary tour of Ekiti and Ondo States and part of Edo State which was very successful, Babalola retreated to his adopted hometown, Ilofa, by the end of 1931, to fortify himself spiritually.
During this period, he embarked on a 40-day fasting and prayer. He spent the 40 days on top of the Odo-Owa mountain now consecrated as Babalola Praying mountain.
While on the mountain, the Lord appeared to him in a vision and told him that an instrument of honour was in the furnace and that He would want him(Babalola) to go into the furnace to fetch it.
Babalola assured God that he was ready for anything He wanted him to do.
It was on this mountain on February 25, 1932, that Apostle Babalola battled with Satan, who wanted to take his life; he engaged in warfare prayer for close to four and a half hours before finally securing victory at the end.
Pastors David Adio, J.A Medayese, and Ben Adefabijo accompanied him to the mountain during this particular encounter.
In March 1932, few days after the spiritual fortification, a warrant for the arrest of Babalola was issued from Ilorin in present Kwara State.
The charges against Babalola read that :Two women at Otuo accused Babalola of calling them witches thereby forcing them to take a specifically banned poison to exonerate themselves of the accusation.
The banned poison Babalola allegedly made them to drink happened to be the particular bark of a tree called obo.
Every one in the country knew that no one, witch or not, had ever taken this poison without an adverse effect; it was either the person died instantly or vomited strange things; neither of these things happened to the women though.
So, with the cooperation of the colonial government that obviously saw Babalola as a threat, Babalola was arrested for preaching against witches. He was taken to Ilorin and then transferred to Benin City where he was charged to court based on this accusation.
Many devout Christians were outraged and wanted to hire attorneys to defend the case, but Babalola refused to be represented, saying that the Lord had set his path.
He was sentenced to jail for six months in Benin City in March, 1932. It was believed by many till today that the sentencing was a result of persecution, an attempt to end the ministry of this resurging prophet who was causing some mission churches and the colonial government a great deal of concern.
Now, there was another prisoner at the Benin prison yard by the name Cyprian Ufon. Mr Ufon who hailed from Creek Town in Calabar area was very sick and depressed. Babalola prayed for him and he was healed and cured of his depression. He quickly became a follower of Babalola. Babalola later understood that he(Ufon)was the instrument of honour God had told him about during his prayer retreat at Ilofa.
Babalola electrified and turned the prison yard to a house of God. Many prisoners and warders were healed and saved. Notably was the case of a pregnant lady, also from Creek Town who had safe delivery through the ministration of Babalola in the prison. The warders also brought their families and relatives to receive healing through the prayers of Babalola.
On June 2, 1932, Pastors Idris Vaughan and George Perfect arrived in Nigeria as the first missionaries of the Apostolic Church based in Britain. They traced Babalola to Prison and paid him a visit. During the visit, the missionaries heard with their own ears what the Lord had done through Babalola in the lives of the warders and prisoners.
Babalola was eventually released in October, 1932 after serving his jail term.
(Source: God of 1930).