The Nigerian electricity network, with an average generation capacity of 5500 MW, face significant challenges due to constrained power, leading to grid instability and inefficiencies. This research presents a comprehensive framework for harnessing excess power within the Nigerian grid, emphasizing its application in ancillary services and grid balancing. The proposed framework integrates energy storage systems, demand response programs, as well as renewable energy sources, offering a strategic approach to optimize grid performance and enhance reliability. Through simulation studies and optimization models, the research demonstrates the viability of this framework in addressing the challenges of the Nigerian power sector, contributing to the sustainability and modernization of the electricity grid.