Court Nullifies Araraume's Appointment as NNPC Board Chair
NNPCL Wins Appeal Against Senator Araraume, Stabilizing Governance and Saving Billions
The Nigerian National Petroleum Company Limited (NNPCL) has secured a significant victory in a long-running legal dispute with Senator Ifeanyi Araraume. On August 8, 2025, the Court of Appeal, Abuja Division, overturned a Federal High Court judgment that had reinstated Araraume as NNPCL's Non-Executive Chairman and awarded him ₦5 billion in damages.
The appellate court agreed with NNPCL's appeal, ruling that Araraume’s claim was statute-barred (filed outside the legally permissible timeframe), effectively dismissing his case and validating all NNPCL Board decisions made since his removal in January 2022.
The dispute, which had lasted over two years, began when Araraume was appointed Non-Executive Chairman in September 2021 but was removed by then-President Muhammadu Buhari in January 2022. In April 2023, the Federal High Court nullified Buhari's decision, ordering Araraume's reinstatement and awarding him ₦5bn in general damages.
The Presidency appealed, arguing lack of jurisdiction, statute-barred claim, and excessive damages. The Court of Appeal agreed with NNPCL, setting aside the Federal High Court judgment and sparing the company a massive financial payout.
This ruling stabilizes NNPCL’s governance, maintains the validity of its Board resolutions, and sets a precedent in Nigerian corporate governance law. The company's management noted that the decision secures governance stability for NNPC Ltd.
The decision also marks a significant milestone in the oil and gas sector, easing concerns about the validity of board resolutions taken since Araraume’s removal. The Court of Appeal's judgment removes a legal risk that could have invalidated all decisions of the NNPC Board since 2021.
In a statement, the management of NNPCL expressed gratitude for the ruling, affirming their commitment to upholding the highest standards of corporate governance and ensuring stability in the oil and gas sector. The decision sets a corporate governance precedent in Nigerian law, providing clarity and certainty for future legal disputes involving corporate entities.
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