The Abuja Electricity Distribution Company (AEDC) has dismissed about 800 workers in what has become one of the largest retrenchment exercises in Nigeria’s power sector in recent years. The mass layoff, which began on Wednesday, November 5, 2025, forms part of the company’s ongoing internal restructuring aimed at cutting costs and improving operational efficiency.
AEDC, responsible for supplying power to the Federal Capital Territory, Kogi, Niger, and Nasarawa States, has battled persistent revenue shortfalls and performance challenges. Sources within the company revealed that the initial plan was to sack about 1,800 employees, but the figure was later reduced to 800 after intense negotiations with the National Union of Electricity Employees (NUEE) and the Senior Staff Association of Electricity and Allied Companies (SSAEAC).
One affected employee, who requested anonymity, said management had “planned to sack 1,800, but after pressure from the unions, they reduced it to 800.” Another insider confirmed that “the unions initially rejected any layoffs, but eventually agreed to the revised figure. The letters were delayed for days but were finally distributed yesterday.”
A copy of the disengagement letter titled “Notification of Disengagement from Service” and signed by AEDC’s Chief Human Resources Officer, Adeniyi Adejola, confirmed that the retrenchment was part of an ongoing rightsizing exercise. The letter stated that the decision was taken after “careful consideration” and urged the affected staff to complete clearance procedures and return company property before receiving their final payments.
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The letter also noted that all statutory deductions and outstanding financial obligations would be settled according to company policy and relevant laws. It further expressed appreciation for the contributions of the affected workers and wished them success in their future endeavours.
Industry observers say the move is online with deepening troubles in Nigeria’s electricity sector, where mounting debts, poor revenue recovery, and decaying infrastructure continue to threaten the viability of distribution companies. Analysts warn that AEDC’s decision could foreshadow similar actions by other DisCos struggling to remain afloat amid heavy financial pressure and regulatory uncertainty.
The retrenchment has sparked concern among employees and union leaders, with many fearing that more layoffs could follow if the sector’s financial crisis persists.
