The Nigerian National Petroleum Company Limited (NNPC Ltd) has secured a significant legal win at the Court of Appeal, Abuja Division, with a ruling delivered on August 8, 2025, that overturns a previous Federal High Court judgment which had reinstated Senator Ifeanyi Ararume as Non-Executive Chairman of its Board and ordered NNPC to pay N5 billion in damages.
The appeal court upheld NNPC Ltd’s position that the Federal High Court’s April 2023 decision was delivered in error and declared the claim brought by Ararume to be statute-barred. This decision spares NNPC Ltd a massive financial payout and removes a legal risk that could have invalidated all board decisions made since 2021, thereby preserving governance stability within the national oil firm.
Ararume had approached the Federal High Court in 2022 seeking nullification of his removal from the chairmanship, reinstatement, and damages amounting to N100 billion, claiming his ouster was unlawful and violated provisions of the Petroleum Industry Act (PIA) and the Companies and Allied Matters Act (CAMA). The Federal High Court ruled in his favor in April 2023, but the government, challenging the judgment, filed an appeal citing lack of jurisdiction and unconstitutional application of the law.
NNPC’s statement following the appellate court’s ruling emphasized that the decision not only secures corporate governance stability for the company but also sets a precedent in Nigerian law, affirming the validity of board resolutions critical to the oil and gas sector’s investment and policy direction.
This ruling brings to a close a legal dispute that had caused concerns about the legitimacy of board actions and potential impacts on the strategic direction of Nigeria’s most vital energy company. The Federal Government, under President Bola Tinubu’s administration, had reconstituted the NNPC board in November 2023 amidst the ongoing legal tussle.