Electrical distribution systems’ reliability is a critical parameter for electrical networks and their end-users. Among the different parameters associated with these systems’ reliability, voltage profile is most commonly affected in the electrical network due to different internal and external parameters such as lines and feeders’ impedance, system overloads, and increments on end-users. A poor voltage profile can have adverse impacts on the end user, such as long-term harm to their electric and electronic devices. For both consumers and companies that provide electricity, a low voltage profile thus leads to a loss of power. The Distributed Generation (DG) system is a viable option to improve voltage profiles while conserving the environment by unlocking the usage of any renewable energies following recent technological advancements and environmental concerns. This article proposes an alternative method to enhance voltage profiles in a distribution network (Abuja Electricity Distribution Company, AEDC) by comparing the most effective approach for power losses and voltage profile compensation through DGs and capacitor banks. Detailed simulations are conducted to explain and validate the results with the optimum system voltage improvement and loss reduction. This work has found that the voltage profiles are more enhanced with DG units compared to capacitor banks. The power losses were reduced from the initial value of 1196.4 kW to 762.4 kW with a saved energy of 36.3% with DG-unit as compared to FC with a power loss reduction of 1005.2 kW (energy saved of 16.0%).