The quest for the penetration of wind energy into the Nigerian power system network is on the rise and this greatly influences the overall power system behaviour. In this study, a review is given to the potential of wind energy in Nigeria and the relevant challenges posed to using this resource for generation of wind power in the country. In lieu of this, adequate models of power system components and wind energy conversion systems are used for wind energy investigation studies and simulations were carried out in MATLAB/SIMULINK to show the characteristic variations in wind speed and generated power.