The Abuja Electricity Distribution Company (AEDC) has laid off about 800 employees as part of a large-scale restructuring exercise, marking one of the most significant job cuts in Nigeria’s power sector in recent years.

The retrenchment, which began on Wednesday, November 5, 2025, follows months of internal review as the company struggles with operational inefficiencies, mounting debts, and declining revenue.

AEDC, responsible for electricity supply to the Federal Capital Territory (FCT) as well as Kogi, Niger, and Nasarawa States, has faced persistent financial strain due to energy theft, poor collections, and rising costs.

According to PUNCH, company insiders revealed that management had initially planned to terminate 1,800 staff, but the number was later reduced to 800 after negotiations with the National Union of Electricity Employees (NUEE) and the Senior Staff Association of Electricity and Allied Companies (SSAEAC).

One affected worker said 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.”

Another employee confirmed that letters of disengagement were distributed on Wednesday, having been delayed earlier in the week.

A copy of the termination letter, titled “Notification of Disengagement from Service” and signed by Adeniyi Adejola, AEDC’s Chief Human Resources Officer, described the move as part of an “ongoing rightsizing process.”

The letter stated:

“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.”

It also directed affected employees to return company property and complete exit clearance procedures before receiving their final payments.

The layoffs underscore the deepening financial and operational crisis in Nigeria’s electricity industry, where revenue shortfalls, regulatory uncertainty, and aging infrastructure continue to strain the distribution companies (DisCos).

Industry analysts warn that the AEDC retrenchment could be a sign of worsening instability across the power sector, as electricity firms struggle to remain solvent amid rising costs and unpaid consumer bills.