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About 800 workers at Abuja Electricity Distribution Company (AEDC) were notified this week that their jobs are ending, marking one of the largest single-point lay-offs by a Nigerian utility in recent years. The move, which began Wednesday, Nov. 5, has sent ripples through the labor market and across countless households.
The company, a unit of Transcorp Power Plc, itself linked to Nigerian businessman Tony Elumelu, serves the Federal Capital Territory and the states of Kogi, Niger and Nasarawa. The lay-offs follow months of internal change at the distributor. Many Nigerian households are struggling with higher prices and an unreliable power supply, leaving utilities caught between regulatory constraints and mounting operating expenses.
Workers assured entitlements after exit
According to The Punch, sources close to the matter said the management had initially planned to dismiss as many as 1,800 employees. After tense discussions with labor unions, including the National Union of Electricity Employees and the Senior Staff Association of Electricity and Allied Companies, the number was reduced to 800. The unions had first opposed any job cuts but later accepted a smaller-scale retrenchment after several rounds of negotiation.
A letter dated November 5, 2025, and signed by AEDC’s Chief Human Resources Officer, Adeniyi Adejola, confirmed the decision. The document, titled “Notification of Disengagement from Service,” described the exercise as part of an “ongoing rightsizing process” and assured affected workers of their entitlements once they complete exit clearance procedures.
Restructuring sparks sector-wide uncertainty
AEDC operates as a subsidiary of Transcorp Power, which holds a 50.99 percent stake through Transnational Corporation of Nigeria Plc (Transcorp), chaired by Nigerian investor Tony Elumelu. According to corporate filings Jeolan International Limited owns 60 percent of AEDC.
The layoffs mark another chapter for AEDC which has faced regulatory scrutiny and financial penalties in recent years. The Nigerian Electricity Regulatory Commission (NERC) fined the company N200 million ($139,000) in April 2024 for overbilling customers outside Band A. NERC also directed AEDC to refund affected customers and strengthen its billing system.
Last year, the company almost lost its license after payment disputes and leadership changes that unsettled operations. Since then, regulators have told AEDC to improve efficiency, reduce power losses and restore customer confidence in one of Nigeria's most important electricity networks. The company has yet to issue a formal statement beyond the letters to employees, leaving many in the power sector watching for what the restructuring means.
