No fewer than 800 employees of the Abuja Electricity Distribution Company (AEDC) have been affected by an ongoing retrenchment exercise amid worsening inflation and soaring living expenses across the country.
The exercise, which began on Wednesday, November 5, 2025, marks a major phase in the company’s internal restructuring.
AEDC, which supplies electricity to the Federal Capital Territory as well as Kogi, Niger, and Nasarawa States, has been grappling with operational inefficiencies and revenue shortfalls.
The retrenchment followed weeks of negotiations between the company’s management and labour unions, the National Union of Electricity Employees (NUEE) and the Senior Staff Association of Electricity and Allied Companies (SSAEAC), during a series of meetings held in October 2025 in Abuja. Management explained that the layoffs were necessary to reposition AEDC for greater productivity, efficiency, and long-term sustainability.
According to the agreement reached, affected workers will receive varying compensation packages depending on their grade levels.
Staff on Grades 4–6 are to be paid 28% of their annual gross salary as an end-of-service token, plus 13 months of basic salary as separation benefits.
Those on Grades 7–10 will receive 39% of their annual gross salary and 15 months of basic salary, while ad hoc staff are entitled to 45% of their annual gross salary and 20 months of basic pay.
In addition, the company and the unions agreed that 2.5% of the total exit package will be remitted as check-off dues to the unions, while 3% will serve as a service charge for non-union members.
All outstanding pension contributions are also to be computed and paid into the respective Pension Fund Administrators (PFAs) in compliance with statutory regulations.
An official from NUEE, who spoke on condition of anonymity, described the retrenchment as “unfortunate but inevitable.”
“We pushed for fair compensation and transparency. The economic situation and sectoral inefficiencies made this outcome unavoidable,” the official said.
The latest development adds to the woes of AEDC, which has been battling leadership and financial crises since the United Bank for Africa (UBA) took over its ownership in December 2021, following KANN Consortium’s failure to service its debt.
