JKNewsMedia
COURT OF Appeal, Abuja Division, has overturned the Federal High Court’s April 2023 decision that had annulled Senator Ifeanyi Araraume’s removal as non-executive Chairman of the Nigerian National Petroleum Company Limited (NNPCL) Board and awarded him N5 billion in damages.
The appellate court ruled the lower court’s judgment was delivered in error and confirmed that the case was statute-barred.
Also, the judgment spares NNPC Ltd a substantial financial burden, removes a legal threat to the validity of board decisions since 2021, reinforces governance stability, establishes a corporate governance precedent in Nigerian law, and validates critical board resolutions affecting investment and policy in the oil and gas sector.
Since the Petroleum Industry Act took effect, Senator Ararume had received his appointment as a non-executive chairman in September 2021, only to be removed in January 2022 via a letter from the Office of the Secretary to the Government.
Dismissing his removal as wrongful, he sued in September 2022, seeking reinstatement, a declaratory order nullifying decisions made in his absence, and substantial damages.
In April 2023, Justice Inyang Ekwo ruled in Ararume’s favour, setting aside his removal, voiding subsequent board decisions, and awarding ₦5 billion for reputational harm and disruption of his duties.
The Presidency, while respecting the rule of law, contested the judgment and appealed in June 2023.
It argued that the Federal High Court lacked jurisdiction, that the suit was statute-barred, and that the damages sum was excessive.
The ruling, delivered on 8 August 2025, upheld the legality of the removal and confirmed that board decisions made since 2021 remain valid.
It also affirmed governance continuity at the national oil firm and established a precedent for corporate governance in Nigeria.
