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The Nigerian power problem has resulted to incessant planned, forced and unplanned outages. This has grounded many activities and has destroyed many industrial operations and processes. In addition, it has resulted to erratic and unreliable supply of electricity. It has also reduced productivity, increase unemployment and crime rates in the country. Hence, an analytical method is developed to study the dynamic- reliability of the distribution system, as well as optimizes the occurrence of faults and outages along the consumer point in each feeder in order to improve the performance of the system. This research work revealed the downtime, failure rate and reliability index along each of the eight feeders between years 2004-2011. It also improved the reliability and performance of the distribution system.