The Abuja Electricity Distribution Company (AEDC) has begun a large-scale retrenchment exercise affecting about 800 employees. The layoffs, which commenced on Wednesday, November 5, 2025, follow months of internal restructuring at the utility firm, which serves the Federal Capital Territory, Kogi, Niger, and Nasarawa states.
Multiple company insiders told The PUNCH that management had initially planned to dismiss 1,800 employees but reduced the figure to 800 after a series of tense negotiations with the National Union of Electricity Employees and the Senior Staff Association of Electricity and Allied Companies.
“The management wanted to sack 1,800, but after much pressure, they brought it down to 800,” one employee said on condition of anonymity. “The unions first insisted that nobody should be sacked but later allegedly agreed to the reduced figure.”
According to another source, affected workers began receiving termination letters on Thursday after a short delay.
A sample letter titled “Notification of Disengagement from Service” and signed by the Chief Human Resources Officer, Adeniyi Adejola, confirmed that the exercise was part of an “ongoing rightsizing process.”
The letter read in part:
“We regret to inform you that your services with the company will no longer be required, effective November 5, 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.”
Entitlements to be Paid
AEDC assured affected staff of due entitlements upon completion of exit clearance and stated that all relevant deductions—including taxes, union dues, and loan repayments—would be made before final payment.
The retrenchment highlights persistent turmoil in Nigeria’s electricity sector, which continues to grapple with low investment, aging infrastructure, and poor cost recovery more than a decade after privatisation.
Last year, AEDC narrowly avoided licence suspension by the Nigerian Electricity Regulatory Commission (NERC) over payment defaults and management disputes. The company, now under private management, remains under regulatory pressure to improve service delivery and curb energy losses.
Industry observers warn that the job cuts could worsen operational inefficiencies and fuel customer dissatisfaction across Abuja and neighbouring states, where complaints about unreliable supply and arbitrary billing remain widespread.
When contacted, AEDC’s Head of Customer Experience, Kenechukwu Ofili, confirmed the ongoing staff reduction, describing it as a “routine organisational exercise” conducted “in line with the agreed framework.” He added that an official statement would be issued soon.