The Abuja Electricity Distribution Company, AEDC has commenced a sweeping retrenchment exercise affecting about 800 employees, even as Nigerians continue to reel under rising inflation, soaring living costs, and erratic power supply.
The mass layoff, which began on Wednesday, November 5, 2025, comes after months of internal reorganization at the energy company, which serves the Federal Capital Territory, Kogi, Niger, and Nasarawa states.
Multiple sources familiar with the situation told our correspondent on Thursday that management initially proposed laying off 1,800 employees before reducing the number to 800 following tense negotiations with the National Union of Electricity Employees and the Senior Staff Association of Electricity and Allied Companies.
One of the sources, an AEDC employee, said management had planned to lay off 1,800 people but lowered the number to 800 due to pressure from unions, which had previously asked that no employees be put off.
“The management wanted to sack 1800, but after much pressure, they brought it down to 800. The unions initially insisted that nobody should be sacked,” the employee, who pleaded not to be named in order not to be victimized, stated.
“The unions first said nobody should be sacked, but later they allegedly agreed to 800. The affected staff were supposed to start receiving their letters from Monday, but it was delayed, and then yesterday, the affected staff started receiving letters,” another source familiar with the development revealed.
A sample of the disengagement letter titled “Notification of Disengagement from Service,” sighted by Chronicle NG, dated November 5, 2025, and signed by AEDC’s Chief Human Resources Officer, Adeniyi Adejola, confirmed that the exercise was part of an “ongoing rightsizing process.”
The letter further noted that all affected employees would be paid their full entitlements once the exit clearance process was completed.
The letter 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. Please be assured that this decision was made after careful consideration and in accordance with company policy.
“You are kindly required to complete the Exit Clearance process in your zone and return any company property in your possession before your final exit to your HR business partner. Completion of these formalities will be required before the processing of your exit payment.
“Please note that applicable deductions, including PAYE, check-off dues, outstanding loans, and unretired advances (if any), will be made in accordance with company policy and relevant statutory provisions. AEDC acknowledges your contributions during your period of service and extends best wishes for success in your future endeavors.”
The mass layoff at AEDC highlights Nigeria’s power sector’s increasing dilemma, which remains plagued with low investment, weak infrastructure, and poor cost recovery despite more than a decade of reform.
Last year, AEDC’s operational license narrowly avoided regulatory suspension due to disagreements regarding payment defaults and management changes, particularly in 2021 and 2023. The company, which is currently privately owned, has come under increasing pressure from the Nigerian Electricity Regulatory Commission to enhance service delivery and decrease energy losses.
This current wave of job layoffs might put more strain on an already overburdened workforce and increase customer unhappiness, particularly in Abuja and nearby states, where residents have long complained about poor electrical supply and arbitrary invoicing.
When contacted, the organization’s Head of Customer Experience, Kenechukwu Ofili, verified the firing of employees by the electricity company. He did, however, claim that it was a usual everyday exercise. He went on to say, “A statement will be released. The process is underway and follows the agreed-upon structure.”
