The Abuja Electricity Distribution Company (AEDC), owned by Tony Elumelu’s Transcorp Group, has plunged into crisis following the sack of over 800 employees, a move that has sparked concern amid Nigeria’s deepening economic hardship, surging inflation, and persistent power outages.
In May 2023, Transcorp Group, led by Elumelu, acquired AEDC through a consortium, taking over operations in the Federal Capital Territory, Kogi, Niger, and Nasarawa States. However, the company has since faced growing internal and operational challenges.
The mass layoff, which began on Wednesday, November 5, 2025, is part of what management described as an “ongoing rightsizing process.” Multiple sources within the company revealed that AEDC had initially planned to dismiss 1,800 workers but later reduced the figure to 800 following intense 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 disclosed, speaking on condition of anonymity.
Another source noted that while the disengagement letters were initially scheduled for release on Monday, 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 reportedly signed by Adeniyi Adejola, AEDC’s Chief Human Resources Officer. The letter confirmed that the retrenchment was part of the company’s restructuring efforts.
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.”
It further instructed affected employees to complete exit clearance procedures and return company property before receiving their final payments. The company added that entitlements would be processed after statutory deductions, including PAYE, union dues, and outstanding loans.
Industry observers say the mass retrenchment reflects the deepening crisis in Nigeria’s power sector, which continues to struggle with outdated infrastructure, poor cost recovery, and low investor confidence—over a decade after the privatisation of electricity distribution companies.
AEDC narrowly avoided regulatory suspension last year over payment defaults and boardroom disputes that had disrupted operations in both 2021 and 2023. Now under Transcorp’s management, the company remains under pressure from the Nigerian Electricity Regulatory Commission (NERC) to improve service delivery and reduce energy losses.
Analysts fear the layoffs could worsen service quality and increase customer dissatisfaction in Abuja and neighbouring states, where residents already contend with erratic power supply and arbitrary billing.
When contacted, AEDC’s Head of Customer Experience, Kenechukwu Ofili, confirmed the retrenchment exercise, describing it as a “routine process.”
