The move comes as households and businesses continue to endure erratic electricity supply, rising inflation, and higher living costs.

The layoff began on November 5 after months of internal reorganization. AEDC serves the Federal Capital Territory, Kogi, Niger, and Nasarawa States.

Unions Cut Job Losses After Negotiations

Sources within the company revealed that management initially planned to sack 1,800 workers but later reduced the figure to 800 following strong resistance from the National Union of Electricity Employees and the Senior Staff Association of Electricity and Allied Companies.

An employee familiar with the process said the unions opposed any retrenchment at first but eventually agreed to 800 cuts after several meetings.

“The management wanted to sack 1,800, but after much pressure, they brought it down to 800,” the worker explained.

Another insider noted that affected staff started receiving their letters on Wednesday after initial delays.

Management Confirms Rightsizing Exercise

A copy of the disengagement letter, titled “Notification of Disengagement from Service” and signed by AEDC’s Chief Human Resources Officer, Adeniyi Adejola, confirmed that the layoffs were part of an ongoing rightsizing exercise.

The letter assured affected employees that their entitlements would be paid once they completed the exit clearance process.

It also noted that all statutory deductions, including taxes and outstanding loans, would be made in line with company policy.

“The decision follows the outcome of the company’s ongoing rightsizing exercise,” the letter stated.

“AEDC acknowledges your contributions during your service and extends best wishes for success in your future endeavors.”

Industry Struggles Deepen

The retrenchment highlights persistent instability in Nigeria’s power sector, which continues to face low investment, ageing infrastructure, and poor revenue recovery despite over a decade of reforms.

In recent years, AEDC has battled regulatory challenges and ownership disputes. Its operating license narrowly escaped suspension last year over payment defaults and management disagreements.

The Nigerian Electricity Regulatory Commission has since increased pressure on the utility to cut losses and improve supply reliability.

Customers Fear Worse Service

Analysts warn that the mass layoff could worsen service quality in Abuja and surrounding states.

Residents have long complained about irregular power supply, inflated billing, and poor response to faults.

When reached for comment, AEDC’s Head of Customer Experience, Kenechukwu Ofili, confirmed the layoffs, describing them as part of a routine process.

“A statement will be released,” he said. “The process is ongoing and is being handled in line with the agreed framework.”