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