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Araraume <\/p>\n
By James
\nKindly share:<\/p>\n
The Court of Appeal sitting in Abuja has overturned a lower court judgment that reinstated Senator Ifeanyi Araraume as non-executive Chairman of the board of the Nigerian National Petroleum Company Limited, NNPCL.<\/p>\n
The appellate court also nullified the award of N5bn in damages to him.<\/p>\n
Recall that former President Muhammadu Buhari had appointed Araraume as NNPC Board Chairman, but was later removed and replaced with Margery Okadigbo in 2021.<\/p>\n
Dissatisfied with his removal, Araraume challenged the decision at the the Federal High Court, which in April 2023 nullified reinstated and awarded him N5bn in general damages. <\/p>\n
This prompted an appeal by the NNPC, concerned that decision could the invalidate all board resolutions taken since Araraume’s removal in 2021.<\/p>\n
However, delivering judgment on the speak on August 8, 2025, the appellate court described the decision of the Federal High Court, reinstating Araraume as erroneous, adding that Araraume\u2019s claim was statute-barred.<\/p>\n
In a statement on Wednesday, the NNPC management said the judgment had not only averted a massive financial liability but also \u201csecures 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\u2019s investment and policy direction.\u201d<\/p>\n
According to the statement, \u201cOn August 8, 2025, the Court of Appeal, Abuja Division, upheld NNPC Ltd.\u2019s appeal against the Federal High Court\u2019s April 2023 judgement that annulled Senator Ifeanyi Araraume\u2019s removal as non-executive Chairman of the NNPC Board and awarded him N5bn in damages.<\/p>\n
\u201cThe Court of Appeal\u2019s judgement spares NNPC Ltd a massive financial payout and removes a legal risk that could have invalidated all decisions of the Board since 2021.<\/p>\n
\u201cThe Appeal Court agreed to NNPC Ltd.\u2019s position that the Federal High Court\u2019s earlier decision was delivered in error, noting amongst others, that the claim was statute-barred.<\/p>\n
\u201cThis 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\u2019s investment and policy direction.\u201d <\/p>\n","protected":false},"excerpt":{"rendered":"
Araraume By James Kindly share: The Court of Appeal sitting in Abuja has overturned a lower court judgment that reinstated…<\/p>\n","protected":false},"author":1,"featured_media":7320,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[359,1563],"class_list":["post-7319","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-economy","tag-nigerian-national-petroleum-company-nnpc-limited","tag-sen-ifeanyi-araraume"],"yoast_head":"\n