The Nigerian National Petroleum Company Limited (NNPCL) has recorded a major legal victory after the Court of Appeal in Abuja set aside a Federal High Court judgment that reinstated Senator Ifeanyi Araraume as non-executive Chairman of its Board and awarded him ₦5 billion in damages.

Delivering judgment on August 8, 2025, the appellate court upheld NNPC Ltd’s appeal, declaring that the earlier decision was “delivered in error” and that Araraume’s claim was statute-barred.

The ruling spares the state oil firm from a multi-billion-naira payout and ends a governance dispute that had lingered for over two years.

In April 2023, the Federal High Court nullified former President Muhammadu Buhari’s 2021 decision to remove Araraume from the board, ordering his reinstatement and awarding him ₦5bn in general damages.

The verdict raised concerns in the oil and gas sector about the validity of board resolutions taken since Araraume’s removal, prompting the company to appeal.

The Court of Appeal agreed with NNPC Ltd’s argument that the claim was filed outside the statutory time limit, rendering it incompetent.

A statement issued by the company’s management on Wednesday read, “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 N5bn in damages.

“The Court of Appeal’s judgment spares NNPC Ltd a massive financial payout and removes a legal risk that could have invalidated all decisions of the Board since 2021.”

The company further noted that the decision “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.”