The Court of Appeal in Abuja has delivered a major legal victory to the Nigerian National Petroleum Company (NNPC) Limited, upholding its appeal against a Federal High Court ruling that nullified the removal of Ifeanyi Ararume as non-executive chairman of the company’s board.
Ararume, a former senator representing Imo North, was appointed to the NNPC board by former President Muhammadu Buhari in September 2021 but was replaced in January 2022 by Margaret Chuba Okadigbo.
Following his removal, Ararume challenged the decision in court, alleging wrongful dismissal and an unlawful disruption of his tenure. In April 2023, the Federal High Court ruled in his favour, voiding the removal and awarding him N5 billion in damages.
NNPC immediately filed an appeal, and on August 8, the Court of Appeal reversed the lower court’s judgment, siding with the oil firm and nullifying the damages award.
In a statement on Wednesday, NNPC hailed the appellate court’s decision as a significant win, noting that it spared the company from “substantial financial liability and legal uncertainty that could have jeopardised board decisions made since 2021.”
The Court of Appeal upheld NNPC’s argument that the Federal High Court’s decision was “erroneous” and that Ararume’s claim was statute-barred.
According to NNPC, the judgment reinforces governance stability within the company and “sets a crucial precedent for corporate governance in Nigeria’s oil and gas industry.”
The ruling also affirms the validity of board resolutions deemed critical to NNPC’s investment strategies and policy implementation.
