ABUJA: NNPCLTD has secured a major legal victory after the Court of Appeal in Abuja set aside a lower court ruling that reinstated Senator Ifeanyi Araraume as Non-Executive Chairman of its Board and awarded him N5 billion in damages.
Delivering judgment on August 8, 2025, the appellate court upheld NNPC Ltd.’s appeal against the April 2023 decision of the Federal High Court, describing the earlier ruling as flawed and noting that Araraume’s case was statute-barred.
The decision spares the state-owned oil giant from a substantial financial payout and removes a governance uncertainty that had lingered for over two years.
In April 2023, the Federal High Court nullified former President Muhammadu Buhari’s decision to remove Araraume in 2021, ordering his reinstatement and granting N5 billion in general damages.
The judgment had raised concerns in the oil and gas industry over the legitimacy of board resolutions taken during his absence.
However, the Court of Appeal ruled in favour of NNPC Ltd., agreeing that the High Court erred in law and affirming that the claim was filed outside the statutory time frame.
A statement from NNPC Ltd. management on Wednesday said the verdict not only avoids a massive financial obligation but also secures governance stability, sets a corporate governance precedent in Nigerian law, and upholds the validity of Board resolutions crucial to the oil and gas sector’s investment and policy direction.
With the ruling, all decisions taken by the current NNPC Board since 2021 remain valid, averting a potential governance crisis in Nigeria’s most strategic company.
