This study examined the role of digital skills in income generation and poverty reduction among undergraduate students. The study was motivated by the increasing level of financial hardship faced by students and the growing relevance of digital competencies in addressing economic challenges within the contemporary digital economy. However, the study was to address three specific objectives: one is to identify the types of digital skills acquisition among undergraduate students of the University of Ibadan; two, is to examine the contribution of digital skills acquisition to income generation among undergraduate students; and third is to Identify the challenges faced by undergraduate students in acquisition and utilising digital skills for economic empowerment A descriptive survey research design was adopted, and data were collected from 200 undergraduate students using a structured questionnaire administered via Google Forms. Data were analysed using frequency counts, percentages, mean scores, and descriptive interpretation. Findings revealed that a significant proportion of students had acquired at least one digital skill during their undergraduate studies, mainly through self-learning and online platforms. The results further showed that digital skills contributed meaningfully to students’ income generation, helped reduce dependence on parents or guardians, and improved their ability to meet basic needs such as feeding and transportation. Additionally, digital skills were found to enhance students’ financial confidence and preparedness for economic self-reliance after graduation. However, challenges such as poor internet connectivity, lack of digital tools, academic workload, and insufficient institutional support were identified as major constraints to effective digital skills acquisition and utilisation. The study concluded that digital skills serve as a viable tool for economic empowerment and poverty reduction among undergraduate students. It is therefore recommended to increase institutional support, improve access to digital infrastructure, and integrate practical digital skills training into university curricula to enhance students’ economic sustainability during and after their studies.