The Court of Appeal in Abuja has overturned a 2023 ruling that awarded Senator Ifeanyi Araraume N5bn in damages and reinstated him as non-executive chairman of the Nigerian National Petroleum Company (NNPC) Limited.
In a judgement delivered on 8 August, the appellate court held that the Federal High Court’s earlier decision was made in error, agreeing with NNPC’s argument that the case was statute-barred.
The ruling spares the state-owned oil firm a substantial financial liability and upholds the validity of all board decisions made since 2021. “The Court of Appeal’s decision secures governance stability for NNPC Ltd and sets a corporate governance precedent in Nigerian law,” the company said in a statement on Tuesday.
The legal dispute stemmed from Araraume’s removal from the NNPC board in 2021, which he challenged in court. The Federal High Court had ruled in his favour last year, annulling his dismissal and ordering NNPC to pay him ₦5bn in damages. However, the appellate court found that the lawsuit was filed outside the legally permitted timeframe, rendering the initial judgement invalid.
“This decision upholds the integrity of NNPC’s board resolutions, which are critical to the oil and gas industry’s investment and policy direction,” the company added. The ruling brings closure to a case that had posed a significant legal and financial risk to Africa’s largest oil producer.
NNPC Ltd, which transitioned to a fully commercial entity in 2021, described the verdict as a “landmark victory” that reinforces its corporate governance framework. Legal analysts say the judgement could influence future cases involving statutory timelines for challenging corporate appointments in Nigeria.
Discussion about this post