The Nigerian National Petroleum Company Limited (NNPC Ltd) has secured a major legal victory after the Court of Appeal in Abuja overturned an April 2023 Federal High Court ruling that awarded ₦5 billion in damages to Senator Ifeanyi Araraume over his removal as non-executive chairman of the company’s board.
Delivering judgment on August 8, 2025, the appellate court upheld NNPC Ltd’s appeal, ruling that the lower court’s decision was delivered in error and that Araraume’s claim was statute-barred.
The ruling not only spares NNPC Ltd a hefty payout but also removes a legal cloud that could have invalidated all board decisions taken since 2021.
NNPC Ltd said the decision secures governance stability for the company, sets a key corporate governance precedent in Nigerian law, and preserves the validity of board resolutions critical to investment confidence and policy direction in the oil and gas sector.
Legal analysts say the judgment reinforces the principle that statutory timelines for initiating claims must be respected, and will likely shape future board appointment and removal disputes involving government-owned corporations.
