Business
NNPC secures appeal court victory against Ararume’s N5b suit

The Nigerian National Petroleum Company Limited (NNPCL) has secured a legal victory against Senator Ifeanyi Ararume, avoiding a potential payout of N5 billion in damages.
The Court of Appeal in Abuja on Wednesday overturned a 2023 Federal High Court ruling that nullified Ararume’s removal as non-executive chairman of the NNPCL board and awarded him N5 billion in damages.
In a statement issued by the company, the national oil company disclosed that the judgment saved it from paying N5 billion in damages.
It reads in part: “On August 8, 2025, the Court of Appeal, Abuja Division, upheld NNPC Ltd.’s appeal against the Federal High Court’s April 2023 judgment that annulled Senator Ifeanyi Araraume’s removal as non-executive Chairman of the NNPC Board and awarded him ₦5 billion in damages.
“The Court of Appeal’s judgement spares NNPC Ltd a massive financial payout and removes a legal risk that could have invalidated all decisions of the Board since 2021″, NNPCL further stated.
It further added, “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.
“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,” the statement said.
Ararume was appointed as the non-executive chairman of the NNPCL board in September 2021, shortly after the Petroleum Industry Act came into effect.
However, his appointment was abruptly terminated in January 2022, and he was replaced by Mrs. Margaret Chuba-Okadigbo.
Ararume subsequently filed a lawsuit against his removal, seeking reinstatement, damages, and nullification of board decisions taken in his absence.
The Court of Appeal ruled in favour of NNPCL, saying that the Federal High Court’s earlier decision was delivered in error and that Ararume’s claim was statute-barred.
The judgment not only spares NNPCL a massive financial payout but also removes a legal risk that could have invalidated all board decisions taken since 2021.
The decision has significant implications for NNPCL and the oil and gas industry: The judgment secured governance stability for NNPCL and upheld the validity of board resolutions critical to the industry’s investment and policy direction.
The ruling sets a corporate governance precedent in Nigerian law, particularly concerning the tenure and removal of company board members.
The judgment reinforced investor confidence in the sector by safeguarding the company’s policy direction and governance framework.