Appeal Court Reverses ₦5bn Damages To Araraume, Upholds NNPC Board Stability
The Court of Appeal in Abuja has overturned a Federal High Court ruling that reinstated Senator Ifeanyi Araraume as Non-Executive Chairman of the Nigerian National Petroleum Company Limited (NNPC Ltd) Board and awarded him ₦5 billion in damages.
Delivering judgment on 8 August 2025, the appellate court held that the lower court erred in its decision and ruled the case statute-barred.
The verdict upholds the legality of Araraume’s removal in January 2022, confirms the validity of all board decisions since 2021, and spares NNPC Ltd a significant financial payout.
Appointed in September 2021 under the Petroleum Industry Act, Araraume was removed just four months later by a letter from the Office of the Secretary to the Government.
He sued in September 2022, describing the action as unlawful and seeking reinstatement and damages.
In April 2023, Justice Inyang Ekwo of the Federal High Court ruled in his favour, voiding subsequent board decisions and awarding compensation for reputational harm.
The Presidency appealed, citing jurisdictional issues and excessive damages.
The Court of Appeal’s decision is seen as a boost for governance stability and a key corporate law precedent in Nigeria’s oil and gas sector.