The judgment of the Federal High Court sitting in Abuja mandating the Nigerian National Petroleum Company (NNPC) Limited to pay its former board chairman, Mr Ifeanyi Ararume, the sum of N5 billion as damages has been upturned by the Abuja Division of the Court of Appeal.
The former lawmaker secured the judgment against the state-owned oil agency at the lower court in April 2023, but this was challenged at the appellate court.
Ruling on the matter on August 8, 2025, according to a statement from the NNPC on Wednesday, August 13, the court upheld the appeal of the energy firm against the Federal High Court’s judgement that annulled Mr Ararume’s removal from the board.
According to the Appeal Court, the Federal High Court’s earlier decision was delivered in error, noting amongst others, that the claim was statute-barred.
In the statement, NNPC said this decision of the appellate court “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.”
It also stated that the judgement spares it of “a massive financial payout and removes a legal risk that could have invalidated all decisions of the board since 2021.”
Recall that in 2023, the late former President Muhammadu Buhari removed Mr Ararume as the chairman of NNPC but he approached the court to challenge this, arguing it was illegal, unlawful, unconstitutional and a total breach of the Companies and Allied Matters Act (CAMA), asking N100 billion as damages.
Though his prayers were granted by Justice Inyang Ekwo, the compensation awarded was N5 billion and it was for the disruption of his appointment because it was unlawful and illegal.