The Nigerian National Petroleum Company Limited (NNPCL) has secured a major legal victory after the Court of Appeal overturned a Federal High Court judgment that had annulled the removal of Senator Ifeanyi Ararume as the company’s non-executive chairman.

In a statement posted on its official X account on Wednesday, the state-owned oil giant revealed that the judgment was delivered on August 8, 2025.

The earlier ruling, given by the Federal High Court in April 2023, had ordered NNPCL to pay Ararume ₦5 billion in damages. However, the Appeal Court upheld NNPCL’s argument that the case was statute-barred and that the lower court’s decision was given in error.

NNPCL noted that the ruling spares it from a massive financial payout and removes a legal risk that could have jeopardized all board decisions made since 2021.

“The judgment 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 stated.

Senator Ararume was appointed to the NNPCL board by former President Muhammadu Buhari in September 2021 but was replaced by Margret Chuba Okadigbo in January 2022.

This latest ruling not only saves NNPCL billions but also reaffirms the stability of its board decisions moving forward.