The Nigerian National Petroleum Company Limited (NNPCL) has announced that it had secured a legal victory in the case filed against it by former federal lawmaker, Senator Ifeanyi Ararume.
In a statement issued on Tuesday posted on X (formerly Twitter), the national oil company said the judgment saved it from paying damages amounting to N5 billion.
“On August 8, 2025, the Court of Appeal, Abuja Division, upheld NNPC Ltd.’s appeal against the Federal High Court’s April 2023 judgement that annulled Senator Ifeanyi Araraume’s removal as non-executive Chairman of the NNPC Board and awarded him N5 billion in damages,” NNPCL noted.
The earlier judgment by Justice Inyang Ekwo had ruled that the President lacked the authority to remove a non-executive chairman without following the company’s statutes.
It ordered Ararume’s reinstatement, voided all board decisions taken during his exclusion, and granted him damages for reputational harm and disruption of duties.
The Presidency, while expressing respect for the rule of law, disagreed with the ruling and filed an appeal in June 2023.
In its submissions, the government argued that the Federal High Court lacked jurisdiction, that Ararume’s suit was statute-barred, and that the damages awarded were excessive.
“The Court of Appeal’s judgement spares NNPC Ltd a massive financial payout and removes a legal risk that could have invalidated all decisions of the Board since 2021,” NNPCL stated.
The Appeal Court agreed to NNPC Ltd.’s position that the Federal High Court’s earlier decision was delivered in error, noting amongst others, that the claim was statute-barred.
“This decision of the Court of Appeal secures governance stability for NNPC Ltd., sets a corporate governance precedent in Nigerian law, and upholds the validity of Board resolutions critical to the oil and gas industry’s investment and policy direction,” the NNPCL added.
Backstory
In September 2021, then-President Muhammadu Buhari appointed Senator Ararume, a former lawmaker and businessman, as a Non-Executive Chairman of the NNPC, shortly after the Petroleum Industry Act (PIA) came into effect.
However, even before he resumed, his appointment was cut short abruptly on January 17, 2022, when then-President Buhari, through a letter from the Office of the Secretary to the Government of the Federation, removed him from the position and replaced him with Margaret Chuba-Okadigbo. No official explanation was provided for the decision.
Feeling wronged, Ararume approached the Federal High Court in Abuja on September 12, 2022. In his suit, he sought an order nullifying his removal, reinstating him to the chairmanship, awarding him N100 billion in damages, and declaring all decisions made by the NNPC board in his absence null and void.
He argued that his removal was arbitrary, in breach of the PIA, and without due process.
