The Abuja Electricity Distribution Company (AEDC) has begun a sweeping retrenchment exercise that has left about 800 workers jobless, sparking outrage across Nigeria’s power sector.
The mass layoff, which started on Wednesday, November 5, 2025, follows months of internal restructuring within the company, which supplies power to the Federal Capital Territory (FCT), Kogi, Niger, and Nasarawa States.
Multiple company sources confirmed to The Punch that the original plan was to sack 1,800 employees before management reduced the figure to 800. The reduction reportedly followed intense pressure and negotiations with the National Union of Electricity Employees (NUEE) and the Senior Staff Association of Electricity and Allied Companies (SSAEAC).
One AEDC staff member, who requested anonymity, said the management only bowed to union pressure after serious protests.
“The plan was to sack 1,800, but unions fought back. Eventually, they agreed to 800,” he said.
Another source revealed that the dismissal letters were delayed for several days before being distributed.
“The affected staff began receiving their disengagement letters yesterday,” the insider confirmed.
A sample letter, titled “Notification of Disengagement from Service,” and signed by Adeniyi Adejola, AEDC’s Chief Human Resources Officer, confirmed the retrenchment. The letter described the move as part of an ongoing rightsizing exercise.
It read in part:
“We regret to inform you that your services will no longer be required effective November 5, 2025. This decision follows the outcome of the company’s rightsizing process.”
The letter further assured that all affected employees would receive their full entitlements after completing exit formalities. It also noted that deductions for taxes, union dues, and outstanding loans would be processed according to company policy.
AEDC’s management acknowledged the workers’ contributions and wished them success in their future endeavours — a message that many dismissed as “cold and perfunctory.”
When contacted, the company’s Head of Customer Experience, Kenechukwu Ofili, confirmed the mass sacking but downplayed the incident.
He described it as a “routine process” and said a formal statement would be released soon.
He said, “The process is ongoing and handled within the agreed framework. It’s a normal company exercise.”
The layoffs mark one of the largest workforce cuts in Nigeria’s power sector since 2020. They come at a time when Nigerians are grappling with record inflation, job losses, and unreliable electricity supply.
Energy analysts say the retrenchment exposes the deeper structural problems in the nation’s power industry. Despite over a decade of reforms, the sector continues to battle weak infrastructure, poor cost recovery, and heavy regulatory pressure.
Last year, AEDC narrowly avoided losing its operating licence after disputes with regulators over payment defaults and board changes in 2021 and 2023.
The company, now privately managed, has faced mounting pressure from the Nigerian Electricity Regulatory Commission (NERC) to improve efficiency and cut energy losses.
However, critics warn that these new job cuts could worsen service delivery and further frustrate millions of residents in Abuja, Kogi, Niger, and Nasarawa, who already complain about outrageous billing and erratic power supply.
As Nigeria’s economic hardship deepens, labour unions are expected to react strongly in the coming days, potentially setting the stage for another round of industrial unrest in the energy sector.