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The Abuja Electricity Distribution Company (AEDC) has begun a mass retrenchment exercise that has seen about 800 employees lose their jobs, further heightening public concern over the state of Nigeria’s economy and the country’s struggling power sector.
The exercise, which officially started on Wednesday, November 5, 2025, is part of what the company describes as an “ongoing rightsizing process.” AEDC currently serves the Federal Capital Territory (FCT), as well as Kogi, Niger, and Nasarawa States.
According to credible sources within the company, the retrenchment followed months of internal restructuring and consultations between management and labour unions.
Initially, the firm had planned to disengage as many as 1,800 employees before trimming the number to 800 after 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 spoke on condition of anonymity, confirmed the reduction.
“The management first wanted to lay off 1,800 workers, but after intense pressure from the unions, it was reduced to 800. Initially, the unions rejected the plan entirely but later reached a compromise,” the source disclosed.
Another insider explained that the process had been delayed several times before the affected staff began receiving their disengagement letters.
“The letters were supposed to be issued earlier in the week, but distribution only started on Wednesday,” the source noted.
A sample of the disengagement letter, signed by AEDC’s Chief Human Resources Officer, Adeniyi Adejola, and dated November 5, confirmed the move.
The document, titled “Notification of Disengagement from Service,” stated that the decision was made “after careful consideration” as part of a larger “rightsizing exercise.”
The letter also assured affected employees that their entitlements would be paid once they completed the company’s exit clearance procedures.
It read in part: “We regret to inform you that your services with the company will no longer be required, effective November 5, 2025.
“Please be assured that this decision was made after careful consideration and in line with company policy.”
Industry watchers say the development reflects deeper troubles within Nigeria’s power sector, which has continued to battle poor infrastructure, underinvestment, and inefficiencies despite years of reforms and privatisation efforts.
An energy analyst, Musa Adamu, described the retrenchment as “a worrying signal of the sector’s instability.”
According to him, “When a major distribution company like AEDC cuts hundreds of workers, it shows that operations are not sustainable under the current economic and regulatory conditions.”
AEDC has faced several regulatory and operational challenges in recent years. In 2023, the company narrowly avoided licence suspension after disagreements over debt repayment and internal management crises.
The Nigerian Electricity Regulatory Commission (NERC) has repeatedly urged the company to improve its service delivery, reduce energy losses, and ensure financial transparency.
However, the latest retrenchment could further affect service quality across AEDC’s coverage areas, where customers have long complained about irregular supply and estimated billing.
Many residents in Abuja and neighbouring states fear the move might worsen their already unreliable electricity situation.
A resident of Mararaba, Nasarawa State, lamented that the layoffs could lead to more power disruptions.
“If AEDC keeps cutting staff instead of fixing the system, the lights will go off more often. We are the ones who will suffer for it,” he said.
As Nigerians continue to battle rising inflation and a high cost of living, the AEDC layoffs highlight the growing economic strain on both companies and households.
For many of the affected workers, the timing of the job cuts could not have been worse.