The Nigerian National Petroleum Company Limited (NNPC Ltd.) has recorded a significant legal triumph after the Court of Appeal in Abuja overturned a Federal High Court judgment that had awarded ₦5 billion in damages to Senator Ifeanyi Araraume.
In its ruling, the Court of Appeal upheld NNPC Ltd.’s appeal against the April 2023 decision that annulled Araraume’s removal as non-executive Chairman of the NNPC Board. The appellate court agreed with NNPC’s position that the Federal High Court had erred in its judgment, stressing that the claim was statute-barred and therefore invalid.
This landmark decision not only spares NNPC Ltd. from a massive financial payout but also eliminates a looming legal risk that could have jeopardized the validity of all Board decisions made since 2021. According to NNPC Ltd., the verdict guarantees governance stability within the company and sets a powerful precedent for corporate governance in Nigerian law.
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In an official statement, NNPC Ltd. hailed the ruling as a crucial win for Nigeria’s oil and gas sector, noting that it safeguards vital Board resolutions that underpin multi-billion-dollar investments and key policy directions in the industry.
The outcome marked a turning point in a legal battle that had threatened to shake the leadership structure of one of Africa’s most strategic state-owned enterprises, reinforcing NNPC Ltd. ‘s standing in both the domestic and international energy markets.
