While gas shortages, inadequate transmission, and losses pose critical bottlenecks, the main challenge for the power sector in Nigeria is the lack of liquidity (or weak commercial viability) of actors along the value chain – from gas-to-power production to power generation, transmission and distribution. Once there is sufficient flow of funds and a visible path to profitability, investments in improvements and expansion will alleviate losses as well as gas and transmission inadequacies.

Insufficient power supply is perhaps the least understood yet the most widespread developmental challenge in Nigeria, affecting consumers across locations, sectors and socio-economic strata. It is widely believed that insufficient power supply in Nigeria is due to low generation capacity. It may surprise many that Nigeria utilizes only a third of its available generation capacity: while only 3500-5000 MW is typically operational, Nigeria’s installed generation capacity stands at 12,522 MW. You may ask, why would a country starved for power have so much idle capacity? It is a combination of gas supply shortages and inadequate transmission capacity to wheel the entire available capacity.

Analogically, idle generation is like a car with a large engine capacity but short on fuel (gas supply) and with inadequate tires (transmission). Beyond the issue of idle generation, a staggering 40 percent of the energy generated is lost due to the Aggregate Technical, Commercial and Collection (ATC&C) losses, well above the North American and European average of 8 percent.

The key challenges are further discussed in more detail below:

https://businessafricans..com.ng/p/entrepreneurship.html

Privatisation of power sector in Nigeria can be likened to a bundle of broom that was scattered into several broomsticks and no stick could really sweep.

That's what happens when you give national asset to politicians and crooks.
Nothing will work.