The Court of Appeal, Abuja Division, has overturned a Federal High Court judgment that had awarded ₦5 billion in damages to Senator Ifeanyi Araraume over his removal as Non-Executive Chairman of the Nigerian National Petroleum Company Limited (NNPCL).
In its ruling, the appellate court upheld NNPCL’s appeal, holding that the April 2023 decision of the Federal High Court was delivered in error. The panel agreed with NNPCL’s argument that Araraume’s claim was statute-barred, meaning it was filed outside the legally permissible timeframe for such actions.
The dispute dates back to September 2021, when the late former President Muhammadu Buhari appointed Araraume as Non-Executive Chairman of the newly incorporated NNPCL, following the enactment of the Petroleum Industry Act (PIA), which transformed the state oil corporation into a Companies and Allied Matters Act (CAMA)-regulated entity.
Barely three months later, Araraume’s name was replaced with Margret Chuba Okadigbo in a fresh board announcement—prompting a legal challenge.
In April 2023, the Federal High Court in Abuja declared Araraume’s removal “null and void”. Delivering judgment in a ₦100 billion suit filed by Araraume, Justice Inyang Ekwo held that the replacement by President Buhari in January 2022—when a nine-member board and management team was constituted—was illegal.
In his suit (FHC/ABJ/CS/691/2022), the lawmaker had asked the court to “determine whether his replacement did not contravene provisions of the Memorandum and Articles of Association of the NNPC, Companies and Allied Matters Act 2010 and the Petroleum Industry Act 2021, amongst others.”
Justice Ekwo awarded Araraume ₦5 billion in general damages and ordered his immediate reinstatement by the federal government.
However, NNPCL appealed, arguing that the case was filed out of time and that the removal fell within the powers of the appointing authority under both the PIA and CAMA.
On August 8, 2025, the Court of Appeal agreed with NNPCL, setting aside the lower court’s ruling and affirming the validity of all NNPCL board decisions made since 2021.
In an official statement issued on Wednesday, NNPCL said the judgment had spared its management from paying the ₦5 billion damages.
“It also reinforces governance stability in the national oil company and sets a precedent for corporate governance disputes in Nigeria’s public and private sectors,” the statement read.
