Abuja Electricity Distribution Company Justifies SackIing Of 800 Workers

The Abuja Electricity Distribution Company (AEDC) has stated that its decision to terminate the employment of 800 workers is based on urgent operational restructuring aimed at ensuring improved services to customers, as well as enhanced operational efficiency and excellence.

LEADERSHIP reports that the AEDC  commenced a sweeping retrenchment exercise affecting about 800 employees.

In an official statement released on its website in Abuja on Friday, AEDC management explained that the restructuring was in line with its corporate transformation strategy.

According to the company, the restructuring is also in line with its strategic direction to become more agile, innovative, and customer-centric.

“As part of the transformation, we have promoted high-performing staff, released retiring employees and those performing below par.

“We have put in motion the implementation of a robust employee development and customer management plan aimed at driving our customer-centric focus.

“The company is committed to providing reliable, safe, and sustainable electricity to its customers across its touchpoints, supporting the growth and development of Nigeria’s energy sector,” it said

The mass layoff, which began on Wednesday, November 5, 2025, follows months of internal restructuring at the utility firm, which serves the Federal Capital Territory, Kogi, Niger, and Nasarawa States.

Multiple sources familiar with the development within the company told The Punch that management had initially proposed sacking 1,800 workers before reducing the number to 800 after a series of tense negotiations with the National Union of Electricity Employees and the Senior Staff Association of Electricity and Allied Companies.

“The management wanted to sack 1800, but after much pressure, they brought it down to 800. The unions initially insisted that nobody should be sacked,” the employee, who pleaded not to be named in order not to be victimised, told the Punch.

“The unions first said nobody should be sacked, but later they allegedly agreed to 800. The affected staff were supposed to start receiving their letters from Monday, but it was delayed, and then yesterday, the affected staff started receiving letters,” another source familiar with the development revealed.

A sample of the disengagement letter titled “Notification of Disengagement from Service”, seen by  LEADERSHIP 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 also 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.”

The mass layoff at AEDC underscores the deepening crisis in Nigeria’s power sector, which continues to face low investment, weak infrastructure, and poor cost recovery despite over a decade of reforms.

Last year, AEDC’s operational licence narrowly escaped regulatory suspension following disputes over payment defaults and management changes, notably in 2021 and 2023. The company, now privately managed, has been under 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.