Switzerland, a country composed of four major language groups, is comprised of 26 cantons and many municipalities, with each canton being linguistically homogenous, has always been a model of a federal state that is practising an inclusive democracy. The Nigerian federation, on the other hand, has evolved from a colonial federal legacy that was based on three unwieldy component regions into a union of 36 states and 774 constitutionally entrenched localities. Pressures for fundamental federal reforms have remained a persistent, intense and divisive feature of contemporary Nigerian politics, characterised by ethnic, religious and regional contestations that frequently produce episodes of violence. The paper examines the impact of federalism and Democratization process in Nigeria with particular focus on governance, political representation and participation using the Swiss federalism as a model in a comparative perspective. Both primary and secondary sources of data are applied with the theory of Separation of Powers guiding the discourse in the paper. The findings suggest that the Swiss federation has been built into a state where governance is institutionalised, while diversity is seen as strength with the people and the cantons well represented through participation in decision making, whereas in Nigeria, the practice of federalism has thrown up many challenges of governance. The paper recommends that Nigeria should borrow a leaf from the Swiss model of federalism through the devolution of power and decentralisation of functions from the federal government to the states and local governments. Also, Nigeria could adopt the Swiss model of direct democracy, which would allow for more citizens' participation in decision making and governance.