The Abuja Electricity Distribution Company 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, follows months of internal restructuring at the utility firm, which serves the Federal Capital Territory, Kogi, Niger, and Nasarawa States.
Multiple sources familiar with the development within the company told our correspondent on Thursday that the management had initially proposed to sack 1,800 workers before reducing the number 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.
One of the sources, who is an AEDC employee, said the management had initially planned to sack 1,800 workers but reduced the number to 800 after pressure from the unions, which had at first insisted that no employee should be laid 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 victimised, 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 The PUNCH, 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 also stated that all affected staff would be paid their due entitlements upon completion of an exit clearance process.
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 endeavours.”
The mass layoff at AEDC underscores the deepening crisis in Nigeria’s power sector, which continues to face low investment, weak infrastructure, and poor cost recovery despite over a decade of reforms.
Last year, AEDC’s operational licence narrowly escaped regulatory suspension following disputes over payment defaults and management changes, notably in 2021 and 2023. The company, now privately managed, has been under mounting pressure from the Nigerian Electricity Regulatory Commission to improve service delivery and reduce energy losses.
This new round of job cuts could further strain an already overstretched workforce and deepen customer dissatisfaction, especially in Abuja and surrounding states, where residents have long complained about poor electricity supply and arbitrary billing.
