NNPC Ltd Wins Appeal as Court Sets Aside N5bn Award in Governance-Stability Case

By our Correspondent

The Court of Appeal, Abuja Division, has overturned the Federal High Court’s April 2023 judgment that nullified the removal of Senator Ifeanyi Araraume as Non-Executive Chairman of the Nigerian National Petroleum Company Limited (NNPC Ltd) Board and awarded him ₦5 billion in damages.

The appellate court ruled that the lower court erred in its decision and held that the case was statute-barred.

The verdict spares NNPC Ltd a major financial burden, eliminates legal uncertainty over the validity of board decisions since 2021, reinforces governance stability, and sets a corporate governance precedent in Nigerian law. It also upholds crucial board resolutions affecting investment and policy in the oil and gas sector.

Senator Araraume was appointed Non-Executive Chairman in September 2021 under the Petroleum Industry Act but was removed in January 2022 through a letter from the Office of the Secretary to the Government.

He challenged his removal in September 2022, describing it as unlawful and seeking reinstatement, a declaration nullifying board decisions made in his absence, and substantial damages.

In April 2023, Justice Inyang Ekwo ruled in his favour, reversing his removal, voiding subsequent board decisions, and awarding ₦5 billion for reputational damage and disruption of his duties.

The Presidency, while affirming respect for the rule of law, appealed in June 2023, arguing that the Federal High Court lacked jurisdiction, that the suit was statute-barred, and that the damages awarded were excessive.

In its judgment delivered on August 8, 2025, the Court of Appeal upheld the legality of the removal, confirmed the validity of all board decisions made since 2021, and reaffirmed governance continuity at the national oil company.