Palpable fear gripped employees of the Abuja Electricity Distribution Company (AEDC) over plans by the company to trim its workforce, according to an internal memo seen by TheFact Daily.
On Monday, 13 October 2025, the AEDC Management convened a meeting with the two in-house unions—the National Union of Electricity Employees (NUEE) and the Senior Staff Association of Electricity and Allied Companies (SSAEAC) to formally communicate the Management’s decision to conduct a rightsizing exercise.
Although the number of staff to be affected is yet unknown, the Management explained that the decision was informed by the necessity to reposition the company for higher productivity, operational efficiency, and sustainable growth.
To ensure smooth implementation, a series of joint meetings were held between AEDC Management and representatives of the two Unions to identify areas of concern, deliberate on the implications for affected employees, and agree on mitigating measures.
This paper gathered that after exhaustive, week-long deliberations and mutual concessions, the following Heads of Agreement were negotiated, reached and adopted as the full and final understanding between the parties in line with the extant AEDC Conditions of Service:
That 28% of Annual Gross Salary as End-Of-Service Exit Token be paid by the Management to staff on Grades 6-4 as an exit package, in addition to payment of Thirteen (13) Months’ Basic Salary as Separation Benefits, and payment of 13th Month Salary.
That 39% of Annual Gross Salary as End-Of-Service Exit Token be paid to staff on Grades 7-10, in addition to payment of Fifteen Months’ Basic Salary, and payment of 13th Month Salary.
Also, that 45% of Annual Gross Salary as End-Of-Service Exit Token be paid to Ad-hoc Staff, in addition to payment of Twenty (20) Months’ Basic Salary as Separation Benefits, and payment of 13th Month Salary.
Furthermore, it was consummated that 2.5% of the total agreed exit package for all categories listed above shall be deducted as check-off dues in favour of NUEE and SSAEAC, while 3.0% of the total agreed exit package for all non-members shall be deducted and remitted as service charge to the Unions.
Again, it was agreed that all outstanding pension contributions for affected staff shall be computed and remitted to the respective Pension Fund Administrators (PFAs) in accordance with statutory provisions.
According to agreement, Official Exit Letters shall be dispatched to all impacted staff from Monday, 3 November 2025, and all affected staff are required to undergo mandatory Exit Clearance Process prior to payment of exit packages.
It said the Human Resources Representatives and Business Partners shall issue Exit Clearance Forms to impacted staff upon receipt of Exit Letters. Noting that staff are not required to report to Headquarters for clearance; the process shall be completed at their respective Zones and Locations through their designated HR Business Partners.
Going by the resolution only staff whose Exit Clearance Forms are fully completed, certified, and Cleared shall be eligible for payment of the agreed exit package. Adding that all cleared staff shall receive their exit package within two (2) to three (3) working days from the date of submission and approval of their completed Exit Clearance Forms.
“This Agreement takes effect from the date of signing and remains binding on all parties until full implementation is completed,” it read.
The agreement was signed by the AEDC MD, Engr. Chijioke Okwuokenye, and the Chief Human Resources Officer, Adeniyi Adejola, on behalf of the Management, while the Vice President, Distribution, Nwachukuw Wisdom and Assistant General Secretary, Opeluwa Simeon, signed on behalf of NUEE, and Chris Adikwu, and Ejeba John, signed on behalf of SSAEAC.
AEDC has been in leadership and financial crisis since the United Bank for Africa (UBA) took over the ownership in December 2021, after its previous majority stakeholder, KANN Consortium failed to service its debt.
The takeover led to changes in the company’s management and the appointment of an interim management team by UBA.
AEDC has had at least six managing Directors/CEOs since its privatisation in November 2013.
In June this year (2025), this paper reported the threat by the workers to shutdown operations following the company’s inability to settle all outstanding allowances owed to them.
They listed some of the entitlements to include Non-Remittance of pension deductions for 16 months, Non-Implementation of the National Minimum Wage, Non-Promotion and the continuous stagnation of members of staff for over 10 years, Non-Confirmation of staff on Acting Appointment, Non-Regularisation and proper placement of Appointments.
Others include, Refusal to convert Ad-hoc staff to permanent status, The complete collapse of health services owing to the Non-payment of hospital bills, Non-Remittance of 10 Months PAYE, Refusal to complete the work on Review of Conditions of Service, Non-Implementation of the already completed work on Career Path, Undue Board’s Interference with the Day to Fay running of the company, Non-payment of Union Check Off Dues and other Third-party deductions, and Non-payment of 2024 Productivity Bonus.
This is despite the fact that the workers raised the company’s collection by over N95 billion in 90 days within the period. The milestone, they said was achieved through dedicated services without the provision of necessary working materials, and significant lost of members to death owing to pressure and precarious work conditions.
