AEDC lays off 800 workers amid Nigeria’s power sector turmoil
Story by Okafor Vivian
The Abuja Electricity Distribution Company (AEDC) has embarked on a large-scale retrenchment exercise affecting about 800 employees, deepening concerns within Nigeria’s struggling power sector.
The layoffs, which began on Wednesday, November 5, 2025, come amid nationwide hardship marked by rising inflation, soaring living costs, and persistent electricity shortages. AEDC supplies power to the Federal Capital Territory, as well as parts of Kogi, Niger, and Nasarawa States.
According to multiple company insiders, the decision followed months of internal restructuring. Initially, management had proposed dismissing 1,800 workers but reduced the number to 800 after several rounds of negotiations with the National Union of Electricity Employees (NUEE) and the Senior Staff Association of Electricity and Allied Companies (SSAEAC).
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One staff member, who spoke under anonymity, confirmed the development:
“The management wanted to sack 1,800 workers, but after union pressure, the number was brought down to 800. The unions initially insisted that nobody should be sacked, but they later conceded.”
Another source added that affected employees began receiving termination letters on Thursday after initial delays earlier in the week.
A sample of the disengagement letter, titled “Notification of Disengagement from Service” and signed by AEDC’s Chief Human Resources Officer, Adeniyi Adejola, indicated that the layoffs were part of an “ongoing rightsizing process.”
The letter read in part:
“We regret to inform you that your services with the company will no longer be required effective November 5, 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.”
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It further stated that affected staff would receive their entitlements after completing the exit clearance process and returning all company property.
The retrenchment underscores growing instability in Nigeria’s power sector, where operational inefficiencies, mounting debt, and weak infrastructure continue to cripple service delivery despite more than a decade of privatization efforts.
AEDC has faced regulatory and financial troubles in recent years. The company narrowly avoided a licence suspension last year after disputes over payment defaults and recurring management crises in 2021 and 2023. The Nigerian Electricity Regulatory Commission (NERC) has repeatedly pressured the utility to improve service efficiency and reduce energy losses.
Analysts warn that the latest job cuts could further strain AEDC’s operations and worsen customer dissatisfaction, particularly in Abuja and surrounding states where complaints about erratic power supply and arbitrary billing remain widespread.
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When contacted, AEDC’s Head of Customer Experience, Kenechukwu Ofili, confirmed the retrenchment, describing it as a “routine process” aligned with internal policy.
“The exercise is ongoing and is being handled in line with the agreed framework. A statement will be released soon,” he said.
The development adds to the growing tension in Nigeria’s electricity sector, where workers’ unions have threatened protests over layoffs and policy inconsistencies amid the country’s deepening economic crisis.
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