Small regions can best govern their own affairs
Individual states or regions better understand their own problems and are better equipped to deal with them than strong central governments. The central government is more able to deal with pressing national concerns when it does not have to deal with the minutiae of local politics.
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Local governments have a better understanding of their own problems than the central governments do. They can more easily distribute goods and services in a timely and appropriate manner. Issues such as local transport, infrastructure, and spending on local projects all require local knowledge and expertise. Typically regions within a country will need different approaches to similar problems. A highly centralized democracy will struggle to manage the myriad solutions needed. Government is also more likely to be held accountable when things go wrong on a local level. Centralized governments have the excuse of being too far away from certain problems to notice them and having too much to do to meaningfully engage with regional problems. In a federal system, the central government is free to consider national issues such as defense and the economy. Centralized governments are likely to be inefficient and overburdened by the need to come up with policy for every region. Federalism creates better solutions to local problems. In a centralized state small local issues are frequently overlooked, or poorly addressed. Federalism creates accountability.
Some regions will have great difficulty tackling local problems such as traffic, infrastructure, and the maintenance of local institutions due to poverty. A lack of centralization can sometimes mean poorer regions that are unable to help themselves are abandoned.  There are many versions of federalism, and many do not delegate regional powers in a meaningful way. Striking the balance between local and national issues is difficult. Many people disagree on what the central government should do, and what should be left to local government. Often local government is required to solve its own problems without having the powers to do so. Often the central and local governments will shirk responsibility for the same issue. Far from being more efficient federalism can make government extremely inefficient. The organs of government are multiplied to create multiple competing bureaucracies, which are frequently poorly connected to each other. Federalism does not suit regional governments that are poor or lacking in resources. Striking the balance between national and regional powers is difficult and sometimes results in a system where nobody is held accountable for things that do not get done. Having many governments leads to a larger more confusing bureaucracy.
[P1] Regional governments better understand their own problems than central governments do. [P2] Regional governments can tackle regional problems more efficiently, leaving the central government to tackle more pressing issues. [C] Federal states can better run their own affairs.
Rejecting the premises