Power supply is a very fundamental part of man’s daily living. It is needed in our homes, hospitals, offices, schools and in the society generally. It also promotes industrialization of countries. It is widely known that efficient power supply is apposite for the economic development of any nation. In Nigeria and some other developing nations, the electricity generation and distribution is at an all round low for more than decades. There is constant failure and instability in power supply and this inhibits the economic growth in Nigeria. This power failure is due to many reasons and this paper examines some of those reasons. The paper analyses electricity generation and distribution in Nigeria with particular reference to Ibadan Electricity Distribution outlets. It also examines the legal and regulatory mechanisms intended to improve the efficiency of power supply in Nigeria. The qualitative approach is used in this article. Secondary data from scholarly published books, journals, articles, on line materials and reports is used in this work. The study concludes that unless the power supply situation improves in Nigeria, the country cannot truly experience sustainable economic development and all round growth. Hence, the paper recommends that, the government dedicate resources and energy into the generation of electricity sufficient for the country and her economic advancement.