The Court of Appeal, Abuja Division, on August 8, upheld the Nigerian National petroleum Company (NNPC) Limited’s appeal against the Federal High Court’s April 2023 judgment that annulled Sen Ifeanyi Araraume’s removal as non-executive Chairman of the NNPC Board and awarded him ₦5 billion in damages.
With this judgment, the Court of Appeal thus spared NNPC Ltd a massive financial payout and removed a legal risk that could have invalidated all decisions of the Board since 2021.
The Appeal Court agreed to NNPC Ltd.’s position that the Federal High Court’s earlier decision was delivered in error, noting amongst others, that the claim was statute- barred.
A statement from the NNPC Ltd, signed by its management, read: “This decision of the Court of Appeal 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.”
