AEDC Announces Major Layoffs Amid Ongoing Challenges in Nigeria’s Power Sector
The Abuja Electricity Distribution Company (AEDC) has initiated a significant retrenchment process, affecting approximately 800 employees. This move comes as Nigerians continue to face rising inflation, increasing living costs, and unreliable power supply. The layoffs, which began on Wednesday, November 5, 2025, are part of a broader internal restructuring effort at the utility firm that serves the Federal Capital Territory, Kogi, Niger, and Nasarawa States.
Multiple sources within the company have revealed that the management initially planned to lay off 1,800 workers before reducing the number to 800 following negotiations with the National Union of Electricity Employees and the Senior Staff Association of Electricity and Allied Companies. One source, an AEDC employee who wished to remain anonymous, shared insights into the situation.
“The 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,” the employee said. Another source confirmed that the affected staff were expected to receive their letters from Monday, but the process was delayed. “The affected staff started receiving letters yesterday,” the source added.
A disengagement letter titled “Notification of Disengagement from Service,” dated November 5, 2025, and signed by AEDC’s Chief Human Resources Officer, Adeniyi Adejola, confirmed that the exercise was part of an “ongoing rightsizing process.” The letter stated that all affected staff would be paid their due entitlements upon completion of an exit clearance process.
The letter read in part:
“We regret to inform you that your services with the company will no longer be required, effective 5th November 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.
You are kindly required to complete the Exit Clearance process in your Zone and return any company property in your possession before your final exit to your HR Business Partner. Completion of these formalities will be required before the processing of your exit payment.
Please note that applicable deductions, including PAYE, check-off dues, outstanding loans, and unretired advances (if any), will be made in accordance with company policy and relevant statutory provisions. AEDC acknowledges your contributions during your period of service and extends best wishes for success in your future endeavours.”
Impact on the Power Sector and Customers
The mass layoff at AEDC highlights the deepening crisis in Nigeria’s power sector, which continues to struggle with low investment, weak infrastructure, and poor cost recovery despite over a decade of reforms. Last year, AEDC’s operational licence narrowly avoided regulatory suspension due to disputes over payment defaults and management changes in 2021 and 2023. The company, now privately managed, has faced mounting pressure from the Nigerian Electricity Regulatory Commission to improve service delivery and reduce energy losses.
This new round of job cuts could further strain an already overstretched workforce and deepen customer dissatisfaction, especially in Abuja and surrounding states, where residents have long complained about poor electricity supply and arbitrary billing.
When contacted, the company’s Head of Customer Experience, Kenechukwu Ofili, confirmed the sacking of workers by the power firm. He described the action as a “normal routine exercise” and mentioned that a statement would be released. “The process is ongoing and is being handled in line with the agreed framework,” he added.
Key Details of the Layoff Process
- Start Date:November 5, 2025
- Number of Affected Employees:800
- Initial Proposed Layoffs:1,800
- Reason for Reduction:Pressure from labor unions
- Exit Process:Includes completion of exit clearance and return of company property
- Entitlements:Payment of due entitlements after exit clearance
The situation underscores the challenges facing Nigeria’s power sector and raises concerns about the long-term stability of essential services. As the country continues to grapple with economic and infrastructural issues, the impact of such decisions on both employees and consumers remains a pressing concern.