THE Nigerian National Petroleum Company Limited (NNPCL) said it has been spared a N5 billion financial payout.

The state-owned oil company said in a statement on Wednesday, August 13.

According to the NNPCL, on August 8, 2025, the Court of Appeal, Abuja Division, upheld its appeal against the Federal High Court’s April 2023 judgment that annulled Ifeanyi Araraume’s removal as non-executive Chairman of the NNPC Board and awarded him N5 billion in damages.

“The Court of Appeal’s judgement spares NNPC Ltd a massive financial payout and removes a legal risk that could have invalidated all decisions of the Board since 2021,” NNPCL stated.

It explained that the Appeal Court agreed to its position that the Federal High Court’s earlier decision was delivered in error, noting, amongst others, that the claim was statute-barred.

According to a law dictionary, a statute-barred claim, agreement, or right cannot be the subject of any legal action because it is too late after the statute of limitations has expired.

“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,” the NNPCL added.

The ICIR reports that on Tuesday, April 18, 2023, the Federal High Court, Abuja, restored Ararume as the non-executive chairman of the NNPC and awarded him N5 billion in damages.

He had prayed the court to declare his removal as the NNPCL chief illegal, unlawful, and unconstitutional, and that it was a total breach of the Companies and Allied Matters Act (CAMA) law under which the NNPCL was incorporated.