This study investigated the digital transformation initiatives for effective digital literacy skills among faculty members in Ibrahim Badamasi Babangida University (IBBU), Lapai. The objectives were to examine the types of digital transformation initiatives implemented, assess the level of digital literacy skills among faculty members, evaluate the influence of digital transformation on skill acquisition, and identify challenges faced in utilising digital tools and platforms. A descriptive survey design was adopted, and data were collected from 228 faculty members using a structured questionnaire. Findings revealed a moderate level of digital transformation implementation (overall mean = 2.65), with strong adoption in areas such as electronic examinations and administrative digitalisation, but low implementation in systems like automated library management and institutional repositories. Faculty members demonstrated a high level of digital literacy (mean = 3.28), particularly in using Microsoft Office tools, managing digital files, and conducting digital research. A significant positive correlation (r = 0.71, p < 0.05) was found between digital transformation initiatives and the acquisition of digital literacy skills. However, several challenges were identified, including inadequate internet access, insufficient training, poor power supply, and limited access to personal digital devices. The study concludes that while digital transformation at IBBU has positively influenced faculty digital competence, uneven implementation and infrastructural challenges must be addressed to ensure sustainable digital integration in higher education. Recommendations include expanding digital training programs, investing in ICT infrastructure, and enhancing institutional support systems.