The Abuja Electricity Distribution Company (AEDC) has laid off about 800 employees as part of a cost-reduction drive and restructuring plan aimed at improving operational efficiency.

The move comes at a time when millions of Nigerians are grappling with unstable power supply and rising electricity tariffs.

According to company insiders, the retrenchment affected staff across departments, including customer service, technical operations, and administration. Management said the decision followed a comprehensive performance review and was necessary to “align human resources with business realities.”

The Power Workers’ Union has condemned the layoffs, accusing AEDC of failing to consult labour unions and breaching collective agreements. Union leaders have threatened legal action and possible industrial action if the decision is not reviewed.

Nigeria’s electricity distribution companies, or DisCos, have long faced liquidity shortages, energy theft, and mounting debts to the Transmission Company of Nigeria and generating firms. Industry analysts say that without fundamental reforms, such as tariff adjustments, prepaid meter rollout, and infrastructure investment, the sector will continue to struggle.

Energy policy experts argue that while restructuring may streamline operations, it risks worsening unemployment and public frustration. “Firing workers during a nationwide power crisis sends the wrong signal,” said an analyst with Energy Monitor Africa. “What’s needed is investment in skills, not just downsizing.”

The federal government has yet to comment on the layoffs, but officials in the Ministry of Power are reportedly monitoring the situation. Consumers, meanwhile, remain sceptical that job cuts will translate into better service.