The court of appeal in Abuja ruled in favour of the Nigerian National Petroleum Company (NNPC) Limited, upholding the firm’s appeal against a judgement that annulled Ifeanyi Araraume’s removal as non-executive chairman of its board.
Former President Buhari had appointed Ararume as board chairman of the national oil firm in September 2021, but he was later sacked and replaced with Margaret Chuba Okadigbo in January 2022.
Ararume, a former senator representing Imo north, had sued the president, arguing that his sack was “wrongful” and amounted to “disruption and interruption” of the term of his office.
The federal high court in Abuja agreed with Ararume and voided his removal, also awarding him N5 billion in damages.
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On August 7, the NNPC filed an appeal at the appellate court against the verdict of the lower court, voiding the removal of Ararume.
Providing updates in a statement on Wednesday, the oil firm said the appeal court overturned the judgement on August 8.
“The Court of Appeal, Abuja Division, upheld NNPC Ltd.’s appeal against the Federal High Court’s April 2023 judgement that annulled Senator Ifeanyi Araraume’s removal as non-executive Chairman of the NNPC Board and awarded him N5 billion in damages,” the statement reads.
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“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.
“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.”
The NNPC said the court of appeal’s decision ensures governance stability for the company and establishes a corporate governance benchmark in Nigerian law.
The organisation added that it also affirms the validity of board resolutions essential for investment and policy direction in the oil and gas sector.
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