This study examines the relationship between digital transformation and organizational efficiency in indigenous energy firms in Nigeria, with particular focus on the Niger Delta oil and gas sector. The dependent variable is organizational efficiency (OE), while the independent variables include digital infrastructure (DI), data analytics (DA), automation (AU), supply-chain integration (SC), and human resource digital skills (HR), with firm-specific control variables such as size, capital access, regulatory stability, and security. Using time-series data spanning 1990 –2023, the study applies the Autoregressive Distributed Lag (ARDL) model to test both short-run and long-run dynamics of the relationship, following preliminary descriptive and stationarity analyses. The findings reveal that data analytics and automation have significant positive impacts on organizational efficiency, reflecting their role in predictive maintenance, reduced downtime, and process optimization. Conversely, digital infrastructure and supply-chain integration exhibit weak or insignificant effects, highlighting the infrastructural and institutional bottlenecks in Nigeria’s energy sector. Human resource digital skills, as a moderator, were found to be insignificant in the short run, suggesting that training quality and alignment with firm needs are critical to achieving meaningful efficiency gains. Regulatory stability, captured as a control variable, shows a trade-off effect negatively influencing efficiency in the short term but contributing positively in the long run once reforms are absorbed. The study recommends that indigenous firms adopt a phased digitalization strategy, prioritizing high-impact projects such as analytics and targeted automation. Policymakers should strengthen infrastructure, provide financial incentives to reduce the cost of digital adoption, and implement competency-based HR development programs. Additionally, adaptive governance and effective implementation of the Petroleum Industry Act (PIA) are essential to ensure that digital transformation contributes sustainably to the efficiency and competitiveness of indigenous firms.

Keywords: Digital Transformation, Organizational Efficiency, Indigenous Energy Firms, ARDL Model, Nigeria.