“COURT OF APPEAL OVERTURNS ARARAUME’S REINSTATEMENT AS NNPC CHAIR”
GREATRIBUNETVNEWS–THE Court of Appeal in Abuja has delivered a landmark judgment, upholding the Nigerian National Petroleum Company Limited’s (NNPC Ltd.) appeal against Senator Ifeanyi Araraume’s reinstatement as non-executive Chairman of the NNPC Board. The court also overturned the ₦5 billion damages awarded to Araraume.
Key Highlights:
– Legal Victory for NNPC Ltd.: The Court of Appeal ruled in favor of NNPC Ltd., declaring that the Federal High Court’s earlier decision was “delivered in error”.
– Statute-Barred Claim: The court agreed with NNPC Ltd.’s argument that Araraume’s claim was filed outside the statutory time limit, rendering it incompetent.
– Governance Stability: The judgment 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.
– Financial Implications: The ruling spares NNPC Ltd. a massive financial payout of ₦5 billion and removes a legal risk that could have invalidated all Board decisions taken since 2021
Impact on NNPC Ltd.
The judgment is seen as a significant victory for NNPC Ltd., reinforcing investor confidence in the sector by safeguarding the company’s policy direction and governance framework. With this ruling, all resolutions and actions of the NNPC Ltd. Board since 2021 remain valid
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 company said in a statement.
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