The Court of Appeal in Abuja has overturned a previous judgment that awarded ₦5 billion in damages to former Senator Ifeanyi Ararume and nullified his removal as non-executive chairman of the Nigerian National Petroleum Company (NNPC) Limited.
Ararume, who represented Imo North in the Senate, was appointed by former President Muhammadu Buhari in September 2021 to serve as chairman of the newly incorporated NNPC Ltd.
However, just months later, in January 2022, he was replaced by Margaret Chuba Okadigbo.
Displeased with his sudden removal, Ararume filed a lawsuit against the Federal Government, arguing that the dismissal was unlawful and disrupted his tenure.
In April 2023, the Federal High Court ruled in his favor, voided his removal, and awarded ₦5 billion in damages for what it described as wrongful termination.
However, NNPC appealed the decision. On August 8, 2025, the Court of Appeal ruled in favor of the company, reversing the lower court’s verdict.
The appellate court upheld Ararume’s removal and dismissed the ₦5 billion compensation claim.
Reacting to the ruling, NNPC welcomed the judgment, describing it as a major legal victory.
In a statement issued on Wednesday, the company said the decision helped avert “substantial financial liability” and removed “legal uncertainty that could have undermined board-level decisions made since 2021.”
