The Nigerian National Petroleum Company Limited (NNPC Ltd.) has secured a major legal victory in the lawsuit filed by former senator and businessman Ifeanyi Ararume over his removal as non-executive chairman of the company’s board.
In a statement released on Wednesday, the national oil company announced that the Court of Appeal in Abuja upheld its appeal, overturning an earlier Federal High Court judgment that had awarded Ararume ₦5 billion in damages and nullified his dismissal.
“On August 8, 2025, the Court of Appeal, Abuja Division, ruled in favour of NNPC Ltd., setting aside the April 2023 judgment which annulled the removal of Senator Ifeanyi Ararume and granted him ₦5 billion in damages,” the company said.
NNPC Ltd. described the appellate ruling as a critical win that protects the company from a “massive financial payout” and removes a legal threat that could have invalidated all board decisions made since 2021.
According to the statement, the Court agreed with the company’s argument that the earlier suit was statute-barred and that the Federal High Court’s ruling had been delivered in error.
“This decision ensures governance stability for NNPC Ltd., reinforces corporate governance standards in Nigerian law, and secures the validity of strategic board resolutions shaping the future of Nigeria’s oil and gas industry,” the statement added.
Background
Senator Ararume was appointed as non-executive chairman of NNPC Ltd. in September 2021 by then-President Muhammadu Buhari, following the implementation of the Petroleum Industry Act (PIA). However, he was abruptly removed before assuming office, via a letter from the Office of the Secretary to the Government of the Federation, dated January 17, 2022. He was replaced by Margaret Chuba-Okadigbo.
In response, Ararume filed a lawsuit at the Federal High Court in Abuja on September 12, 2022, seeking to nullify his removal, secure reinstatement, and claim ₦100 billion in damages. He also called for all board decisions taken during his absence to be declared void, arguing that his removal violated due process under the PIA.
In April 2023, Justice Inyang Ekwo ruled in Ararume’s favor, ordering his reinstatement and voiding NNPC board decisions made after his removal. The court also awarded ₦5 billion in damages for reputational harm and loss of earnings.
However, the federal government and NNPC Ltd. rejected the verdict, citing concerns over jurisdiction, the statute of limitations, and the scale of damages. An appeal was filed in June 2023.
The latest ruling by the Court of Appeal sets aside the High Court’s decision, bringing relief to NNPC Ltd. and reaffirming the legitimacy of board actions taken since 2021.
