The Court of Appeal in Abuja has set aside the April 18, 2023 judgment of the Federal High Court which reinstated Senator Ifeanyi Ararume as non-executive chairman of the Nigerian National Petroleum Company Limited (NNPC Ltd.) and awarded him ₦5 billion in damages. In a ruling delivered on Tuesday, the appellate court upheld the appeal filed by NNPC Ltd., holding that the trial court erred in law and that the claims brought by Ararume were statute-barred, having been filed outside the period allowed by law.
Justice Inyang Ekwo of the Federal High Court had last year declared Ararume’s removal from the board “illegal, unlawful, unconstitutional, null and void,” ordered his immediate reinstatement, and awarded him the sum of ₦5 billion as compensation for wrongful removal. The lower court also nullified all decisions taken by the NNPC Ltd. board since his removal in January 2022, a verdict that posed serious legal and operational implications for the company.
Following the judgment, NNPC Ltd. and the Federal Government promptly approached the Court of Appeal, challenging the decision on several grounds, including lack of jurisdiction, improper use of originating summons, and the argument that the case was statute-barred. The appellants also maintained that the Petroleum Industry Act (PIA) 2021, which transformed NNPC into a limited liability company, vested the President with the authority to appoint and remove board members, and that such powers were lawfully exercised in Ararume’s case.
By allowing the appeal, the Court of Appeal has relieved NNPC Ltd. of the ₦5 billion damages and removed the threat that all its board resolutions since 2021 could be nullified. The ruling is seen as a major boost to the company’s corporate stability, protecting key decisions, contracts, and investments made over the last three years from legal uncertainty.
It remains unclear whether Senator Ararume will proceed to the Supreme Court to contest the appellate court’s verdict. For now, the decision represents a significant legal victory for NNPC Ltd., allowing it to focus on its operational mandate without the shadow of a multibillion-naira liability hanging over its leadership.
