The Abuja Electricity Distribution Company (AEDC) has embarked on a major retrenchment exercise that has seen around 800 employees dismissed, even as Nigerians continue to struggle with rising inflation, high living costs, and unreliable electricity supply.
The mass layoff, which began on Wednesday, 5 November 2025, comes after months of internal restructuring within the utility firm, which supplies power to the Federal Capital Territory, Kogi, Niger, and Nasarawa States.
Multiple sources within the company said that AEDC’s management had initially proposed to terminate the employment of 1,800 workers, but the number was reduced to 800 following tense negotiations with the National Union of Electricity Employees and the Senior Staff Association of Electricity and Allied Companies.
One employee, who requested anonymity for fear of victimisation, said: “The management wanted to sack 1,800, but after much pressure, they brought it down to 800. The unions initially insisted that nobody should be sacked.”
Another source added that the affected workers began receiving their disengagement letters on Wednesday after an earlier delay.
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A copy of the letter, titled “Notification of Disengagement from Service” and signed by AEDC’s Chief Human Resources Officer, Adeniyi Adejola, confirmed that the move formed part of the company’s “ongoing rightsizing process.” The letter stated that all affected staff would receive their entitlements once the exit clearance process was completed.
The document read in part: “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.”
The retrenchment underscores the deepening crisis in Nigeria’s power sector, which has been plagued by chronic underinvestment, weak infrastructure, and poor cost recovery despite more than a decade of privatisation and reform efforts.
AEDC’s operational licence narrowly avoided regulatory suspension last year following disputes over payment defaults and management restructuring. The firm has faced mounting pressure from the Nigerian Electricity Regulatory Commission to improve service delivery and reduce losses.
Observers fear that the latest round of job cuts could further strain the company’s operations and heighten customer dissatisfaction, particularly in Abuja and neighbouring states where residents have long complained about erratic electricity supply and arbitrary billing.
When contacted, AEDC’s Head of Customer Experience, Kenechukwu Ofili, confirmed the retrenchment but described it as a “routine exercise,” adding that a formal statement would soon be released.
