Federal form of government is now becoming the finest means of dealing with diversity and particularly an instrument of circumventing or minimize conflict is post-modern politics. Though there are some underlined values and principles of the system, some federations like Ethiopia, despite their level of allegiance to the venture, still remains in the making and perhaps corrupting the arrangement for political gains. A look at the manner of the Intergovernmental Relations, as argued in this work, can be mentioned as an exemplar of such a trend.