The Court of Appeal in Abuja has overturned an April 2023 judgment of the Federal High Court that annulled the removal of Senator Ifeanyi Araraume as non-executive chairman of the Nigerian National Petroleum Company Limited (NNPC Ltd.) board and awarded him ₦5 billion in damages.

The ruling, delivered on August 8, 2025, spares NNPC Ltd. from making the hefty payout and removes a legal risk that could have invalidated all board decisions taken since 2021.

In its judgment, the appellate court upheld NNPC Ltd.’s appeal, agreeing that the Federal High Court’s earlier ruling was delivered in error. The court noted, among other points, that Araraume’s claim was statute-barred.

NNPC Ltd. had argued that the lower court’s decision threatened corporate governance stability and could disrupt the company’s strategic operations in the oil and gas sector.

With the Court of Appeal’s decision, all resolutions and actions of the NNPC Ltd. board since 2021 remain valid.

The judgment is also seen as setting an important corporate governance precedent in Nigerian law, particularly concerning the tenure and removal of company board members.

According to NNPC Ltd., the ruling reinforces investor confidence in the sector by safeguarding the company’s policy direction and governance framework.

The company described the decision as a victory for legal clarity, operational stability, and Nigeria’s investment climate in the petroleum industry.