History of Africa usually governed by an "oba" and an "iwarefa", a council of chiefs who advised the "oba." by the 18th century, the Yoruba city-states formed a loose confederation, with the "Oni" of Ife as the head and Ife as the capital. As time went on, the individual city-states became more powerful with their "obas" assuming more powerful spiritual positions and diluting the authority of the "Oni" of Ife. Rivalry became intense among the city-states. The Oyo Empire rose in the 16th century. The Oyo state had been conquered in 1550 by the kingdom of Nupe, which was in possession of cavalry,
Oyo Empire became the southern emporium of the Trans-Saharan trade. Exchanges were made in salt, leather, horses, kola nuts, ivory, cloth and slaves. The Yoruba of metropolitan Oyo were also highly skilled in craft making and iron work. Aside from taxes on trade products coming in and out of the empire, Oyo also became wealthy off the taxes imposed on its tributaries. Taxes on the kingdom of Dahomey alone brought in an amount estimated at 638 thousand dollars a year. By 1680, the Oyo Empire spanned over 150,000 square kilometers. It reached the height of its power in the 18th century. And