The paper argues that the privatisation of the power generation companies has enhanced electricity generation in Nigeria and that integration of independent power producers into the national grid ameliorated the challenges of electricity generation in Nigeria. The study adopted the theory of economic liberalism to advocate support for a free-market economy and the liberalisation of power generation, transmission and distribution in Nigeria. Documentary method was used for data collection and content analysis for the interpretation of data generated in course of the study .Investigation revealed that privatisation of power generation companies has significantly increased electricity generation in Nigeria from 3000MW in 2013 to about 8100MW daily in 2021. It also discovered that government ownership and management of electricity transmission, as well as frequent national grid collapse, have resulted in massive power losses and unevacuated electricity. On the strength of this findings, the study recommended that the Transmission Company of Nigeria (TCN) which is 100% owned by the government should be privatised to accommodate private sector investment and expansion of the transmission infrastructure to enable the evacuation of more electricity from the generation plants to the national grid.