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The study has examined power sector performance and development of Owerri Municipal, Imo State, Nigeria. The study was carried out to identify the extent to which deregulation of the power sector has enhanced its performance. The researcher used structural functional theory. The researcher used descriptive approach. Only published articles from books, journals and other secondary information were used. The data collected were discussed qualitatively. From the study, it was found that the major factors affecting the performance of Nigeria