The Court of Appeal in Abuja has set aside the judgment of the Federal High Court that reinstated Senator Ifeanyi Araraume as non-executive Chairman of the Nigerian National Petroleum Company Limited (NNPC Ltd) and awarded him N5 billion in damages.
In its August 8, 2025 decision, the appellate court upheld NNPC Ltd’s appeal, describing the earlier ruling as erroneous and holding that Araraume’s claim was statute-barred.
The verdict spares the state oil company from a massive financial payout and removes legal uncertainty over the validity of board resolutions taken since Araraume’s removal in 2021.
The Federal High Court had in April 2023 nullified former President Muhammadu Buhari’s decision to remove Araraume from the NNPC Board, ordering his reinstatement and awarding damages. That decision sparked concerns within the oil and gas sector over the legitimacy of the company’s governance during the period in question.
However, the appellate court found merit in NNPC Ltd’s argument that the lower court erred in law, noting that the suit was filed outside the time frame allowed under the statute of limitations.
In a statement on Wednesday, NNPC Ltd said the ruling “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.”
With the judgment, all decisions taken by the current NNPC Board since 2021 remain valid, averting what could have been a governance crisis in one of Nigeria’s most strategic companies.




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