Delivering judgment on August 8, 2025, the appellate court upheld NNPC Ltd’s appeal against the April 2023 decision, describing the lower court’s ruling as “erroneous” and holding that Araraume’s claim was statute-barred.
The verdict spares the state-owned oil giant from paying billions in compensation and removes a governance dispute that had cast uncertainty over its operations for more than two years.
In April 2023, the Federal High Court had nullified former President Muhammadu Buhari’s 2021 decision to remove Araraume as board chairman, ordering his reinstatement and awarding ₦5 billion in general damages. The ruling raised concerns in the oil and gas sector about the validity of board resolutions taken since his removal.
In its latest decision, however, the Court of Appeal aligned with NNPC Ltd’s argument that the suit was filed outside the time limit prescribed by the statute of limitations.
A statement by the company’s management on Wednesday said the ruling “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.”
“With this judgment, all decisions taken by the current NNPC Board since 2021 remain valid, averting a potential governance crisis in the country’s most strategic company,” the statement added.
