Nwali Chidozie
The Nigerian National Petroleum Company (NNPC) Limited In a statement released on Wednesday, hailed the judgment of the court of appeal in Abuja as a landmark decision that spares the “company a massive financial payout and removes a significant legal risk that could have invalidated all board decisions made since 2021.” NNPC stated.
Following legal battle stemmed from the removal of Senator Ifeanyi Araraume as the non-executive chairman of the NNPC board.
The Court of Appeal in Abuja, overturning a lower court judgment that had previously awarded a staggering ₦5 billion in damages against the company.
In September 2021, former President Muhammadu Buhari appointed Araraume to the board, but he was later replaced by Margaret Chuba Okadigbo in January 2022.
Araraume, a former imo state senator representing Imo North, challenged his dismissal, arguing that it was wrongful and in violation of the Petroleum Industry Act (PIA) and the Companies and Allied Matters Act (CAMA).
In April 2023, the Federal High Court in Abuja ruled in Araraume’s favor, declaring his removal unlawful, ordering his reinstatement, and awarding him ₦5 billion in damages for the disruption of his tenure. This judgment the NNPC argued created a significant legal and financial risk for the state owned company.
NNPC swiftly filed an appeal, arguing that the Federal High Court’s decision was erroneous and that Araraume’s claim was “statute-barred,” meaning it was filed outside the legally prescribed time limit.
The Court of Appeal’s judgment on August 8, 2025, sided with NNPC, agreeing that the lower court had erred in its ruling. The appellate court’s decision not only nullified the reinstatement of Araraume but, more critically for the state-owned oil firm, canceled the ₦5 billion in damages.
NNPC, emphasized that the ruling secures governance stability, “establishes a crucial corporate governance precedent in Nigerian law, and upholds the validity of board resolutions critical for the oil and gas industry’s investment and policy direction.” NNPC noted.
