Nigerian oil giant NNPC Limited has successfully overturned a court order that previously required it to pay approximately $6.2 million* (N5 billion) to former board chairman Senator Ifeanyi Ararume, marking a pivotal legal and financial victory for the state-owned energy firm. The Court of Appeal ruling, delivered on August 8, 2025, nullified a 2023 Federal High Court decision that had found Ararume’s 2022 removal as non-executive chairman unlawful.
In a statement shared via its official social media account on Wednesday, NNPC emphasized that the appellate court sided with its argument that the initial ruling contained legal errors, particularly highlighting that Ararume’s case was filed outside the statutory time limit. The reversal spares the company not only the hefty compensation payout but also averts potential upheaval in the oil sector, as the judgment ensures all board decisions made since Ararume’s dismissal remain legally valid.
The dispute traces back to September 2021, when former President Muhammadu Buhari appointed Ararume to NNPC’s board. However, the senator was replaced just four months later by Margret Chuba Okadigbo, a move he challenged in court as wrongful termination. The 2023 lower court ruling in Ararume’s favor had threatened to upend critical corporate resolutions enacted during the tenure of the current board, including policies tied to Nigeria’s oil industry investments and regulatory reforms.
NNPC described the appellate verdict as a landmark for corporate governance, stating it “sets a precedent in Nigerian law” by reinforcing the legitimacy of board directives in major state enterprises. Legal analysts suggest the decision could influence future disputes over leadership transitions in government-linked entities, particularly within Africa’s largest oil-producing nation, where governance stability remains crucial for attracting foreign investment.
While Ararume’s legal team has yet to comment on potential appeals, the ruling provides clarity for NNPC amid ongoing efforts to overhaul Nigeria’s energy sector. The company, which accounts for nearly 90% of the country’s export earnings, has faced increased scrutiny over transparency and management practices in recent years. This legal resolution removes one layer of uncertainty as Nigeria navigates fluctuating global oil markets and domestic reforms aimed at boosting production.
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*Currency conversion based on approximate exchange rate at time of publication.
