Baba, 16, was also trailed by Celtic and Sunderland but opted for a move to Craven Cottage.
Jol said: "It's a good signing. Our academy has done very well - we were champions last year. We have some exciting talents not only in England but foreign countries as well.
"We have players for Denmark and Sweden who can be top players. I am happy for the profile I have created for our academy. The future is bright for Fulham."