Hot SourceEmmanuel Addeh in Abuja
The Nigerian National Petroleum Company Limited (NNPC) yesterday declared that it secured a court victory over the case brought against it by former federal lawmaker, Senator Ifeayin Ararume.
In a statement in Abuja by the national oil company, it disclosed that by winning the case it avoided damages to the tune of N5 billion.
THISDAY recalls that the case revolved around the appointment of Ararume, a former lawmaker and businessman, as a Non-Executive Chairman of the NNPC in September 2021, shortly after the Petroleum Industry Act (PIA) came into effect.
However, even before he resumed, his appointment was cut short abruptly on January 17, 2022, when then-President Muhammadu Buhari, through a letter from the Office of the Secretary to the Government of the Federation, removed him from the position and replaced him with Margaret Chuba-Okadigbo. No official explanation was provided for the decision.
Feeling wronged, Ararume approached the Federal High Court in Abuja on September 12, 2022. In his suit, he sought an order nullifying his removal, reinstating him to the chairmanship, awarding him N100 billion in damages, and declaring all decisions made by the NNPC board in his absence null and void. He argued that his removal was arbitrary, in breach of the PIA, and without due process.
On April 18, 2023, Justice Inyang Ekwo delivered judgment in Ararume’s favour. The court ruled that his ouster was unlawful and violated both the provisions of the PIA and the Companies and Allied Matters Act (CAMA).
Justice Ekwo held that the president’s powers over NNPC did not extend to removing a non-executive chairman without adherence to the company’s statutes. He ordered Ararume’s immediate reinstatement, voided all board decisions taken during his exclusion, and awarded him N5 billion as compensation for the damages to his reputation and disruption of his duties.
The Presidency responded the same day, stating it respected the rule of law but disagreed with the judgment. It announced plans to appeal, and in June 2023, the government formally lodged its appeal.
In its filing, the government argued that the Federal High Court lacked jurisdiction to entertain the matter, claimed Ararume’s suit was statute-barred, and challenged the interpretation of the PIA as applied in the case. It also questioned the legality of awarding such a large sum in damages.
While the appeal was pending, President Bola Tinubu reconstituted the NNPC board in November 2023.
However, a statement from the NNPC said that the oil company has won the appeal, stressing that the Appeal Court agreed with its position that the Federal High Court’s earlier decision was delivered in error.
“On August 8, 2025, 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 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.
“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 NNPC statement added.
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