Tony Elumelu’s Abuja Electricity Distribution Company (AEDC) is in crisis as the electricity firm has sacked over 800 employees, even as Nigerians continue to grapple with surging inflation, rising living costs, and persistent power outages.
In May 2023, Transcorp Group led a consortium that acquired AEDC. Tony Elumelu is the chairman of Transcorp.
The mass layoff, which commenced on Wednesday, November 5, 2025, follows months of internal restructuring at the power distribution firm serving the Federal Capital Territory, Kogi, Niger, and Nasarawa States.
Multiple sources within the company said that the management had initially planned to sack 1,800 workers, but the figure was later reduced to 800 after tense negotiations with the National Union of Electricity Employees (NUEE) and the Senior Staff Association of Electricity and Allied Companies (SSAEC).
“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,” one AEDC employee said, pleading anonymity for fear of victimisation.
Another insider added that the affected workers were supposed to begin receiving their disengagement letters on Monday, but the process was delayed until Wednesday.
A copy of one of the letters, titled “Notification of Disengagement from Service” and dated November 5, 2025, was sighted by The PUNCH. It was signed by Adeniyi Adejola, AEDC’s Chief Human Resources Officer, confirming that the exercise was part of an ongoing “rightsizing 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.”
The company also stated that all affected staff would receive their entitlements after completing the exit process, noting that statutory deductions such as PAYE, check-off dues, and outstanding loans would be applied.
The mass retrenchment highlights the deepening crisis in Nigeria’s power sector, plagued by poor infrastructure, weak investments, and low cost recovery despite over a decade of privatisation reforms.
AEDC narrowly escaped a regulatory suspension last year following disputes over payment defaults and management changes that had previously rocked the company in 2021 and 2023. The firm, now under private management, has been under pressure from the Nigerian Electricity Regulatory Commission (NERC) to enhance service delivery and curb energy losses.
Observers fear the latest layoffs could further strain the already overstretched workforce and worsen customer dissatisfaction, particularly in Abuja and neighbouring states, where residents frequently complain of erratic electricity supply and arbitrary billing.
When contacted, Kenechukwu Ofili, AEDC’s Head of Customer Experience, confirmed the retrenchment exercise, describing it as a “routine process.”
Credit: PUNCH