The Abuja Electricity Distribution Company (AEDC) has embarked on a major retrenchment exercise that has seen about 800 employees laid off, even as Nigerians grapple with rising inflation, high living costs, and erratic electricity supply.
The mass sack, which began on Wednesday, November 5, 2025, follows months of internal restructuring at the utility firm, which supplies power to the Federal Capital Territory (FCT), Kogi, Niger, and Nasarawa States.
Multiple company insiders told The PUNCH that management had initially planned to dismiss 1,800 workers, but reduced the figure to 800 after tense negotiations with the National Union of Electricity Employees (NUEE) and the Senior Staff Association of Electricity and Allied Companies (SSAEAC).
“The management wanted to sack 1,800, but after much pressure from the unions, they brought it down to 800,” said one employee, who requested anonymity for fear of victimisation.
Affected workers began receiving their disengagement letters on Wednesday. A sample letter titled “Notification of Disengagement from Service”, signed by AEDC’s Chief Human Resources Officer, Adeniyi Adejola, confirmed the action as part of an ongoing “rightsizing process.”
The letter assured that disengaged staff would receive their entitlements after completing an exit clearance process and returning company property.
The exercise highlights the deepening crisis in Nigeria’s power sector, which continues to struggle with weak infrastructure, low investment, and poor cost recovery despite years of reforms.
AEDC’s licence narrowly avoided suspension last year following regulatory disputes over debt and management crises in 2021 and 2023.
Observers warn that the layoffs could worsen customer service and public dissatisfaction, particularly in Abuja and neighbouring states, where residents frequently complain of poor power supply and arbitrary billing.
