adsNigeria’s power sector continues to face a persistent liquidity crisis driven less by capacity constraints and more by structural weaknesses in cashflow collection tariff design and counterparty creditworthiness. The Nigerian Electricity Supply Industry historically operated on a sequential payment chain from customers to Distribution Companies (DisCos), Nigeria Bulk Electricity Trader (NBET), Generation Companies (GenCos), and gas suppliers. However, this structure consistently broke down at the distribution level due to high losses and weak collections. Although NBET previously served as the central bulk trader and intermediary within the market, recent reforms under the Electricity Act 2023 and Nigerian Electricity Regulatory Commission (NERC)’s Order on Bilateral Trading are gradually reducing NBET’s role in favour of direct bilateral contracting between market participants.. As noted by the NERC, DisCos have historically remitted well below market invoices, resulting in a sector wide shortfall estimated at over four trillion naira. Interventions such as the Central Bank of Nigeria Payment Assurance Facility and tariff adjustments have provided temporary support but have not resolved the underlying imbalance.