Court of Appeal Overturns N5 Billion Judgment, Affirms Araraume’s Dismissal from NNPC Board
The Abuja Division of the Court of Appeal has delivered a decisive ruling in favor of the Nigerian National Petroleum Company Limited (NNPC Ltd), reversing a prior Federal High Court judgment that had reinstated Senator Ifeanyi Araraume as the non-executive chairman of the company’s board. The appellate court’s decision, handed down on August 8, 2025, also nullified the ₦5 billion in damages previously awarded to Araraume for what was earlier deemed an unlawful removal.
What seat did Ararume hold at NNPC
Senator Araraume, a former lawmaker who represented Imo North Senatorial District, was appointed as the chairman of NNPC Ltd’s board by then-President Muhammadu Buhari in September 2021. However, just four months later, in January 2022, he was removed from the position and replaced by Margaret Chuba Okadigbo. Displeased with the abrupt termination of his appointment, Araraume pursued legal action, arguing that his removal was illegal and that it disrupted his right to serve the full tenure.
In April 2023, the Federal High Court ruled in Araraume’s favor, voiding his dismissal and awarding him ₦5 billion in general damages. The court held that his removal was unlawful and that it caused reputational and professional harm. This decision sparked significant concern within the oil and gas industry, as it called into question the legality of all board resolutions made after his removal—potentially destabilizing NNPC’s governance framework and strategic operations.
NNPC appeals over Ararume’s case
NNPC Ltd. promptly appealed the verdict, arguing that the lawsuit was filed beyond the legally allowed timeframe—thus making it statute-barred—and that the lower court had erred in law by entertaining the case in the first place.
On August 8, the Court of Appeal concurred with NNPC’s arguments, setting aside the earlier judgment. The appellate panel ruled that Araraume’s legal challenge fell outside the limitation period prescribed by Nigerian law, and as such, the Federal High Court had no jurisdiction to adjudicate the matter.
NNPC Reacts: Judgment Safeguards Stability and Corporate Integrity
In an official statement issued on Wednesday, NNPC Ltd welcomed the ruling, describing it as a major legal victory with far-reaching implications. The company noted that the verdict relieves it of a substantial financial liability while simultaneously reaffirming the legal integrity of decisions made by its current board since 2021.
According to the statement, the judgment “ensures governance continuity, reinforces confidence in the company’s corporate structure, and sets a significant precedent in Nigeria’s corporate governance landscape, particularly within the energy sector.”
NNPC further emphasized that the Court of Appeal’s decision validates all strategic board resolutions taken over the last few years—decisions that are central to its investment strategies, international partnerships, and ongoing energy reforms.
“This judgment secures governance stability for NNPC Ltd., sets a corporate governance precedent in Nigerian law, and upholds the validity of Board resolutions critical to the oil and gas industry’s investment and policy direction,” the company said.
Broader Implications
Legal analysts have hailed the ruling as a reinforcement of statutory limitations in administrative and employment-related disputes, underscoring the importance of timely litigation. The case also brings clarity to the extent of presidential powers in appointing and removing individuals from strategic government-owned entities.
The Court of Appeal’s verdict not only restores confidence in NNPC’s leadership structure but also eliminates a lingering legal cloud that could have complicated future investments and policy implementation within Nigeria’s energy sector.
With this judgment, the leadership of Margaret Chuba Okadigbo as NNPC board chair remains legally unchallenged, and the company can now move forward with its operations without the burden of retroactive legal uncertainty or financial damages.
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