Transmission system is the transportation of electrical energy from generating stations to load centers. However, increase usage of non-linear loads from the consumers has led to electrical Power Quality (PQ) problems which have negative impacts on the operation of the power system especially Nigerian power system. This research analyzed the PQ problem on Nigerian 330 kV power system. Newton-Raphson (NR) iterative method was used to performed load flow analysis on Nigerian 28-bus transmission systems. Then power injection model of the Static Synchronous Compensator (STATCOM) was incorporated to modify the NR mathematical model. The suitable placement for the STATCOM in the system was determined using Voltage Sensitivity Index (VSI) and simulation was done in MATLAB/SIMULINK. The results showed that, the suitable placements of STATCOM controller in the power system were buses 5, 8, 12 and 16. The corresponding STATCOM reactive power, sag voltage and sag duration for buses 5, 8, 12 and 16 were 72.56 MVar, 0.77454 p.u, 0.7336s; 65.35 Mvar, 0.7464 p.u, 0.7419 s; 50.86 Mvar, 0.7615 p.u, 0.6512 s and 53.75 MVar, 0.7442 p.u. 0.5972 s, respectively. Therefore, the results have established the importance of STATCOM with VSI in obtaining suitable solution for PQ problems on electrical power system. Keywords: Transmission System, Electrical Energy, Non-linear Load, Power Quality, Newton-Raphson, STATCOM, Voltage Stability Index. DOI: 10.7176/ISDE/12-6-03 Publication date: October 31 st 2022