Sufficient electricity supply is a necessity for every society. No society can develop well in the absence of regular power supply. The power sector specifically the distribution arm right from time up to now that it is privatized, has been faced with many problems. This article examined the problems facing power distribution in Nigeria and the solutions to the problems. It was revealed from the research that non-correlation of the amount that electricity consumers pay for electricity consumption with the cost of generating, transmitting and distributing electricity; the refusal of electricity consumers to pay electricity bills; and the perpetration of electricity theft are the main problems confronting electricity distribution or supply in Nigeria. It was discovered that insufficient funding; and shortage of electricity pre-paid meters also constituted the problems facing power supply in Nigeria. These problems which are stated in the article can be solved by the government critically examining and subsequently reviewing the current method of collecting electricity tariff by making it in such a way that it will correlate with the cost of generating, transmitting and distributing electricity; by electricity distribution companies working in partnership with the Nigerian Police to disconnect electricity consumers who refuse to pay their bills; by Nigerians engaging in attitudinal change in the area of deviating from the negative attitude of committing and encouraging the crime of electricity theft; and by the government reducing excise duties levied on local production of pre-paid meters. Keywords: Problems, Challenges, Power Sector, Electricity Distribution.