NNPC LIMITED Triumphs In Court Of Appeal, Escapes ₦5 Billion Damages In Senator Araraume Case.
The Court of Appeal, Abuja Division, has ruled in favour of the Nigerian National Petroleum Company Limited (NNPC Ltd.) in its long-standing legal dispute with Senator Ifeanyi Araraume,
On Friday, August 8, 2025, the appellate court overturned the Federal High Court’s April 2023 judgement which had nullified Senator Araraume’s removal as non-executive Chairman of the NNPC Board and awarded him ₦5 billion in damages.
The Federal High Court had earlier declared his ouster unlawful and issued the hefty monetary compensation alongside orders that posed the potential risk of invalidating all decisions taken by the NNPC Board since 2021.
The Court of Appeal’s ruling not only spares NNPC Ltd. from what would have been a massive financial payout but also removes a significant legal uncertainty that could have disrupted the company’s operations and boardroom stability.
In delivering its judgement, the appellate court agreed with NNPC Ltd.’s arguments, stating that the earlier decision of the Federal High Court was delivered in error. Among its key findings, the Court of Appeal noted that Senator Araraume’s claims were statute-barred, thereby rendering the lower court’s ruling unsustainable in law.
Legal analysts continue to study the judgement as a corporate governance precedent in Nigerian jurisprudence. The decision however seeks to safeguard the validity of critical board resolutions made since 2021—decisions that shape the investment climate, policy direction, and operational framework of Nigeria’s most strategic energy enterprise.