The growingcomplexity of modern power systems have driven the need for efficient and effective energy distribution mechanisms. Smart grid system has several advantages on power generation, transmission and distribution in power system. However, in Nigeria power system, this smart grid technology has not been utilized optimally due to certain challenges. These challenges are discussed. This work is divided into five part which are: first is introduction which contains explanation of what smart grid is and components of smart grid system. Second part contains the smart technologies and third part contained factors challenging smart grid adoption in Nigeria power system. The fourth section focused on the attacks that smart grid system while in operation while the last is conclusion.