The Abuja Electricity Distribution Company (AEDC) has terminated the employment of about 800 workers in a sweeping retrenchment exercise, marking one of the largest layoffs in Nigeria’s power sector in recent years.
The downsizing, which began on Wednesday, November 5, 2025, forms part of an extensive internal restructuring initiative aimed at tackling AEDC’s persistent operational inefficiencies and financial difficulties.
The company, responsible for electricity supply across the Federal Capital Territory (FCT), Kogi, Niger, and Nasarawa States, has struggled with low revenue collection and increasing consumer debts.
Multiple company insiders confirmed that the AEDC management initially planned to dismiss around 1,800 workers, but the figure was reduced to 800 following intense negotiations with the National Union of Electricity Employees (NUEE) and the Senior Staff Association of Electricity and Allied Companies (SSAEAC).
“Management wanted to sack 1,800, but after much pressure, they brought it down to 800. The unions initially insisted that nobody should be sacked,” an affected employee revealed anonymously.
Another insider disclosed that although the retrenchment letters were originally scheduled for distribution on Monday, delays pushed the process to Wednesday.
A copy of the disengagement letter, titled “Notification of Disengagement from Service” and dated November 5, 2025, was signed by AEDC’s Chief Human Resources Officer, Adeniyi Adejola. The document confirmed that the layoffs were part of an ongoing “rightsizing exercise.”
“We regret to inform you that your services with the company will no longer be required, effective 5th November 2025,” the letter read. “You are kindly required to complete the Exit Clearance process in your Zone and return any company property before your final exit to your HR Business Partner.”
AEDC noted that deductions such as PAYE, check-off dues, loans, and unretired advances would be made before final settlement. The company also expressed appreciation for the contributions of the disengaged employees.
The mass retrenchment further highlights the deepening crisis in Nigeria’s electricity sector, where poor revenue collection, mounting consumer debts, and unstable regulatory frameworks had led several power distribution companies (DisCos) to embark on downsizing and restructuring programs.
Energy analysts warn that AEDC’s move could expose the fragility of the Nigerian power sector even more, as operators continue to grapple with rising operational costs and declining profitability.
