The Court of Appeal, Abuja Division, has upheld Nigerian National Petroleum Company Limited’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 ₦5 billion in damages.
The court’s verdict stops NNPC Ltd from a huge 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 previous decision was delivered in error, noting amongst others, that the claim was statute- barred.
This decision of the Court of Appeal 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, the company said in a statement.
