The Nigerian National Petroleum Company Limited has announced that it has secured an Appeal Court judgement that upheld the state-owned oil firm’s appeal against the Federal High Court’s judgement that annulled Senator Ifeanyi Ararume’s removal as non-executive chairman of the company.

The country’s oil and gas firm disclosed this in a statement on Wednesday through its official X account.

It noted that the Appeal Court gave the judgment on August 8, 2025.

The Federal High Court had in April 2023 ruled in favour of Ararume. NNPCL was told to pay N5 billion as damage to the lawmaker.

Speaking on the latest judgement by the Appeal Court, NNPCL said it spares the oil firm a massive financial payout and removes a legal risk that could have invalidated all decisions of the board since 2021.

“The Appeal Court agreed to NNPC Limited’s position that the Federal High Court’s earlier decision was delivered in error, noting, amongst others, that the claim was statute-barred.

“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,” NNPCL stated.

Recall that in September 2021, former president Muhammadu Buhari appointed Ararume to the NNPCL board.

But, in January 2022, Ararume was replaced by Margret Chuba Okadigbo.