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Financial News

‘Corporate Transformation’ — AEDC Says 800 Layoffs Part Of Strategy To Become More Agile And Customer-Centric

1762585209 AEDC

The Abuja Electricity Distribution Company (AEDC) has confirmed the termination of 800 employees as part of an urgent operational restructuring aimed at improving customer service, operational efficiency, and overall excellence.

In a statement released on its website in Abuja on Friday, AEDC explained that the restructuring aligns with its corporate transformation strategy and strategic vision to become more agile, innovative, and customer-focused.

“As part of the transformation, we have promoted high-performing staff, released retiring employees, and those performing below par. We have also implemented a robust employee development and customer management plan to drive our customer-centric focus,” the company said.

AEDC assured that it remains committed to providing reliable, safe, and sustainable electricity to customers across the Federal Capital Territory, Kogi, Niger, and Nasarawa States, while supporting the growth of Nigeria’s energy sector.

The retrenchment, which began on Wednesday, November 5, 2025, follows months of internal restructuring. Multiple sources told The Punch that management initially proposed laying off 1,800 workers but reduced the number to 800 after negotiations with the National Union of Electricity Employees (NUEE) and the Senior Staff Association of Electricity and Allied Companies (SSAEAC).

“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,” a source who spoke on condition of anonymity said.

Affected staff began receiving disengagement letters titled “Notification of Disengagement from Service” on November 5, signed by AEDC’s Chief Human Resources Officer, Adeniyi Adejola. The letters confirmed the exercise as part of an “ongoing rightsizing process” and assured that all entitlements would be paid after completion of the 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. Completion of the Exit Clearance process will be required before the processing of your exit payment. AEDC acknowledges your contributions during your period of service and extends best wishes for success in your future endeavours.”

The retrenchment highlights the ongoing challenges in Nigeria’s power sector, which continues to grapple with low investment, weak infrastructure, and poor cost recovery despite over a decade of reforms. AEDC, now privately managed, has previously faced regulatory scrutiny, narrowly avoiding licence suspension last year over payment defaults and management disputes.

Industry watchers warn that the latest round of job cuts could place further strain on the workforce and exacerbate customer dissatisfaction, particularly in Abuja and surrounding states, where electricity supply and billing issues remain persistent concerns.