The worsening liquidity crisis in the distribution value chain of the nation’s power sector has forced Abuja Electricity Distribution Company (AEDC) to trim its workforce by 800.
This crisis was as result of low revenue collection and high losses, exacerbated by non-cost-reflective tariffs, a significant metering gap, and a high rate of non-payment and electricity theft.
TheFact Daily reported on Saturday of the plans by the company to layoff the staff after a meeting convened by the AEDC Management with the two in-house unions—the National Union of Electricity Employees (NUEE) and the Senior Staff Association of Electricity and Allied Companies (SSAEAC).
The Management during the meeting on Monday, 13 October 2025, 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 reported that after exhaustive, week-long deliberations and mutual concessions, it was agreed 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.
It was also agreed 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.
Again, 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.
It was also 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.
AEDC has been in a 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 shut down operations following the company’s inability to settle all outstanding allowances owed to them.
