ABUJA, Nigeria (FN)— The Abuja Electricity Distribution Company (AEDC) has dismissed 800 employees in a sweeping restructuring move aimed at improving operational efficiency and service delivery across its coverage areas.
The layoffs, which began Wednesday, mark one of the largest workforce reductions in Nigeria’s power sector in recent years. AEDC serves the Federal Capital Territory, along with Kogi, Niger, and Nasarawa states.
Company officials said the decision followed a comprehensive performance review and was necessary to address longstanding financial and operational challenges. AEDC has struggled with revenue shortfalls and customer dissatisfaction amid frequent power outages.
Originally, the utility planned to terminate 1,800 workers, but the figure was reduced after negotiations with labor unions. The National Union of Electricity Employees and the Senior Staff Association of Electricity and Allied Companies intervened to minimize the impact on staff.
Union representatives expressed concern over the scale of the retrenchment, warning that it could further strain service delivery and morale among remaining employees. They also cited unresolved issues, including unpaid productivity bonuses and outstanding benefits, and issued a two-week ultimatum demanding settlement.
In a statement, AEDC said it was optimistic that ongoing dialogue with union leaders would avert a strike. The company pledged to settle all legitimate allowances and emphasized its commitment to transparency and fairness in the restructuring process.
The company described the shake-up as a much-desired and inevitable institutional reform, aimed at blocking financial leakages and correcting salary disparities. It also announced the elimination of several high-level positions deemed redundant, including General Manager and Special Adviser roles.
Nigeria’s power sector has faced persistent challenges, including aging infrastructure, regulatory hurdles, and insufficient generation capacity. Distribution companies like AEDC often bear the brunt of public frustration over unreliable electricity supply.
The shake-up comes amid broader economic pressures in Nigeria, where inflation and unemployment remain high. Analysts say the move reflects a growing trend of corporate belt-tightening in response to rising operational costs.
AEDC has pledged to reinvest savings from the downsizing into infrastructure upgrades and customer service improvements. The company said it remains committed to delivering stable and affordable electricity to its consumers.
