The Nigerian National Petroleum Company Limited (NNPCL) has scored a major legal win, overturning a court decision that had earlier ordered it to pay ₦5 billion in damages to former federal lawmaker and businessman, Senator Ifeanyi Ararume.
In a statement released on Wednesday, the state-owned oil giant confirmed that on August 8, 2025, the Court of Appeal, Abuja Division, upheld its appeal against an April 2023 ruling of the Federal High Court, which had annulled Ararume’s removal as Non-Executive Chairman of the NNPCL Board.
According to NNPCL, the appellate court’s decision not only saves it from a hefty financial payout but also eliminates a legal risk that could have nullified all board decisions made since 2021.
“The Court of Appeal agreed with our position that the Federal High Court’s ruling was delivered in error, noting among other things that the claim was statute-barred,” the statement read. “This judgment preserves governance stability in NNPC Ltd., sets an important corporate governance precedent in Nigerian law, and secures the validity of key board resolutions crucial to the oil and gas industry’s investment climate.”
In September 2021, then-President Muhammadu Buhari appointed Ararume as Non-Executive Chairman of the NNPCL shortly after the Petroleum Industry Act (PIA) took effect. But before he could assume office, his appointment was abruptly terminated on January 17, 2022, via a letter from the Office of the Secretary to the Government of the Federation, and he was replaced with Margaret Chuba-Okadigbo.
Feeling wronged, Ararume sued the Federal Government and NNPCL at the Federal High Court, Abuja, on September 12, 2022. He sought his reinstatement, ₦100 billion in damages, and a declaration voiding all board decisions made during his exclusion. He argued that his removal was arbitrary, in violation of the PIA, and done without due process.
In April 2023, Justice Inyang Ekwo ruled in his favour, holding that the President lacked the authority to remove a non-executive chairman without following the company’s statutory provisions.
The court ordered Ararume’s reinstatement, nullified all board decisions taken in his absence, and awarded ₦5 billion in damages for reputational harm.
However, the Presidency, while reiterating its respect for the rule of law, disagreed with the verdict and filed an appeal in June 2023, contending that the suit was statute-barred, that the Federal High Court lacked jurisdiction, and that the damages awarded were excessive.
The Court of Appeal’s ruling has now brought the matter to a decisive turn in NNPCL’s favour.
