Appeal court rules in favour of NNPC, overturns order nullifying Araraume’s removal as board chairman

The Court of Appeal in Abuja has ruled in favour of the Nigerian National Petroleum Company (NNPC) Limited, overturning a lower court’s decision that nullified the removal of Ifeanyi Araraume as the company’s non-executive board chairman.

Araraume was appointed to the role by former President Muhammadu Buhari in September 2021 but was replaced by Margaret Chuba Okadigbo in January 2022.

The former senator for Imo North challenged his removal in court, describing it as ‘wrongful’ and a disruption of his tenure.

In April, the Federal High Court in Abuja sided with Araraume, voided his removal, and awarded him ₦5 billion in damages.

However, following an appeal by the NNPC on Thursday, August 7, the appellate court, in its August 8 judgment, set aside the earlier ruling.

“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,” the statement read.

“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.

“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.”

The NNPC stated that the Court of Appeal’s ruling reinforces stability in the company’s governance structure and sets a significant precedent for corporate governance under Nigerian law.

It added that the judgment also upholds the legitimacy of board resolutions critical to driving investment and shaping policy in the nation’s oil and gas industry.