Nigeria’s national oil company, NNPC Limited, has escaped paying ₦5 billion(equivalent of $3.26million) in damages after an Appeal Court in Abuja, the capital of Nigeria, upheld the company’s appeal against a Federal High Court judgment involving Senator Ifeanyi Araraume.
In April 2023, the Federal High Court ruled against NNPC Limited for the removal of Senator Ifeanyi Araraume as non-executive Chairman of the NNPC Board and awarded Ifeanyi Araraume ₦5 billion in damages.
The judgment did not sit well with NNPC Limited, prompting an appeal.
The Appeal Court agreed with NNPC Ltd.’s position that the Federal High Court’s earlier decision was delivered in error, noting, among other things, that the claim was statute-barred.
The Court of Appeal’s judgment spares NNPC Ltd. a massive financial payout and removes a legal risk that could have invalidated all decisions of the Board since 2021.
According to NNPC Limited, this decision of the Court of Appeal 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.
Source:https://energynewsafrica.com
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