It is a known fact that the epileptic power situation in Nigeria has become a recurring decimal. In the light of this stark reality of a country like Nigeria which is constantly plunged into pitch darkness all year round, it has become expedient for a sustainable and urgent remedy to be sought if our country will ever think of rubbing shoulders with the economies of the world. It is this pathetic scenario, we find ourselves in that it has given rise to this paper which tends to review possible ways and means of redressing the ugly trend. This paper examines the prospects and possible applications of Smart Grid Technology (SGT) to the Nigeria Power System. Nigeria Power System consists of 28 buses, 32 Transmission lines and 10 generating stations, with a view to reduce the high active and reactive transmission losses. The study shows that smart grid system will make the present network more efficient and reliable by connecting different sources of distributed generators into the existing grid. Basic requirements necessary for the application of SGT using the Nigeria Power System as a case study were discussed.