The Abuja Electricity Distribution Company (AEDC) has begun a large-scale retrenchment exercise that has seen about 800 employees laid off, deepening concerns among Nigerians already struggling with rising inflation, worsening living conditions, and persistent power outages.
The exercise, which commenced on Wednesday, November 5, 2025, follows several months of internal restructuring within the electricity distribution firm, which supplies power to the Federal Capital Territory (FCT), Kogi, Niger, and Nasarawa States.
According to multiple company insiders, the initial plan was to disengage 1,800 workers, but the figure was reduced to 800 after tense negotiations with the National Union of Electricity Employees (NUEE) and the Senior Staff Association of Electricity and Allied Companies (SSAEAC).
A source within the company said, “The management wanted to sack 1,800, but after much pressure from the unions, they brought it down to 800. The unions initially insisted that nobody should be sacked but later agreed to the reduction.”
Another insider confirmed that the affected employees began receiving their letters of disengagement on Wednesday after a brief delay.
A sample of the letter titled “Notification of Disengagement from Service”, dated November 5, 2025, and signed by AEDC’s Chief Human Resources Officer, Adeniyi Adejola, indicated that the exercise was part of the company’s “ongoing rightsizing process.” The letter assured affected staff that their entitlements would be paid after completing the company’s exit clearance process.
“We regret to inform you that your services with the company will no longer be required, effective 5th November 2025. This decision follows the outcome of the company’s ongoing rightsizing exercise. Please be assured that this decision was made after careful consideration and in accordance with company policy.”
It also noted that applicable deductions—including PAYE, check-off dues, outstanding loans, and unretired advances—would be made before the final settlement of benefits.r
The mass layoff underscores the growing instability in Nigeria’s electricity industry, which has faced persistent operational and financial challenges since the power sector reforms of 2013. Despite the privatisation of the 11 electricity distribution companies, consumers continue to endure poor supply, estimated billing, and high tariffs.
Industry analysts say the AEDC retrenchment reflects the company’s struggle with poor revenue collection, rising energy losses, and regulatory pressure from the Nigerian Electricity Regulatory Commission (NERC) to improve service delivery.
In 2021 and 2023, the company faced serious management and financial crises, including disputes over payment defaults, which nearly led to the suspension of its operational licence.
A senior industry observer noted that the current job cuts could further weaken the company’s operational capacity. “With this scale of downsizing, AEDC risks overstretching its remaining workforce, which could worsen customer dissatisfaction in Abuja and neighbouring states,” the source said.
When contacted, AEDC’s Head of Customer Experience, Kenechukwu Ofili, confirmed the retrenchment but downplayed its significance, describing it as a routine organisational process. “It is a normal exercise. A statement will be released soon. The process is ongoing and is being handled in line with the agreed framework,” Ofili said.
Meanwhile, electricity consumers in the FCT and nearby states have continued to express frustration over poor supply, frequent blackouts, and arbitrary billing despite repeated promises of improved performance by distribution companies.
As Nigeria battles a worsening cost-of-living crisis and rising unemployment, the AEDC retrenchment adds another layer of economic hardship for hundreds of families affected by the layoffs.
