States become federation because of a number of reasons. In other words, states adopt the federation system of government because of these reasons :
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- Social-Cultural Differences : Where many ethnic groups exist in a country with its attendant differences in Religion, Languages, Customs etc a Federal System of Government becomes necessary to allow each group retain its identity while it benefits from the larger states.
- Economic Reasons : Federal System here serve the purpose of enabling states where each pool their various resources scatttered among them for greater economic development. For instance, more employment opportunities for the various units could be generated.
- Historical Factors or Experience : Shared historical experiences can create necessary conditions for a federation. For instance, Nigeria Became a Federation and adopted the Federal system of government as the most suitable to take care of the bringing together of the different social and political entity to form one state by British Colonial Power.
- Fear of Domination : There may be fear of domination of the different ethnic and cultural groups in a country by any one or two of such groups. Etc
There are also many reasons like
- size of a state
- Nearness to one another
- Security need etc