This research tackles Nigeria's antiquated grid limitations through a multi-pronged smart grid modernization strategy emphasizing renewable integration, analytics and automation. Smart grids converge conventional infrastructure with advanced communications networks and information systems to enable intelligent monitoring, control and optimization. However, Nigeria's current grid suffers from delayed maintenance, outdated equipment, inadequate supply and systemic corruption. A modernized smart grid would facilitate large-scale adoption of sustainable generation like solar, wind, and fuel cells. Distributed energy storage mitigates intermittency concerns, ensuring stable operation during renewable integration. The analytical methodology involved mathematically modelling the integrated generation, storage and distribution components comprising the entire smart grid ecosystem. Extensive datasets informed simulations analyzing trade-offs between configurations and schemes to minimize costs, maximize efficiency, reduce emissions and meet dynamic loads. Outcomes demonstrate that optimized planning and operation of smart grid energy systems constitute a pivotal foundation for transitioning lagging grids into highly responsive and sustainable next-generation networks. Specific findings included optimal capacitor placement and renewable mix pathways for maximizing system performance under the modelled constraints. This research affirms intelligent, optimized management of integrated smart grid assets offers a viable roadmap for revamping inadequate traditional grids into robust infrastructures harnessing clean energy and leveraging automation for economy, reliability and sustainability. The strategies furnish actionable directions for policymakers and practitioners managing strained grids and pursuing technology-enabled energy ambitions.