Court restores Ararume as NNPCL Chairman, awards N5b damages against FG

Araraume (file photo)

Ararume sued the Federal Government last year, praying the court to declare his sack as NNPCL board chairman illegal, unlawful and unconstitutional.

By Ishaya Ibrahim

The Federal High Court, Abuja has declared the sack of Senator Ifeanyi Ararume as Non-Executive Chairman of the Nigeria National Petroleum Company Limited (NNPCL) as illegal and unlawful.

Delivering judgment in the matter on Tuesday, Justice Inyang Ekwo said that his removal was unconstitutional and as such the court restored him as the Non- Executive Chairman of the company with full benefits.

The judge also set aside every decision taken by the board that was appointed after Ararume’s removal.

Justice Ekwo awarded N5 billion as damages in favour of Ararume.

Recall that Ararume sued the Federal Government, praying the court to declare his sack as NNPC board chairman illegal, unlawful and unconstitutional.

He contended that his removal vide a letter on January 17, 2022 with reference number SGF. 3V111/86 was a violation of the CAMA law under which NNPCL was incorporated.

Apart from asking the court to issue an order to return him to office, Ararume also demanded for N100 billion as compensation for the damages he suffered following the unlawful removal.

TheNiche had reported on November 9, 2022 how Buhari appointed Araraume as board chairman of NNPC in September 2021 but swiftly  replaced him with Margaret Chuba Okadigbo, widow of the late Chuba Okadigbo, after Imo State Governor, Hope Uzodimma, mounted resistance against Araraume’s appointment.

Thereafter, Araraume, in a suit marked FHC/ABJ/CS/1621/2022 and filed at the Abuja federal high court, sought to be reinstated as the board chairman and be paid N100 billion in damages.

In the suit, the former senator asked the court to determine the following questions;

“Whether by a proper construction and interpretation by this Honourable Court of the provisions of the memorandum and Articles of Association of the 2nd defendant, the Companies and Allied matters Act, 2020 and the Petroleum Industry Act 2021, the office and position of the plaintiff as non-executive chairman of the 2nd defendant are not exclusively governed and regulated by the Companies and Allied matters Act, 2020, the Petroleum Industry Act, 2021 and the Memorandum and Articles of Association of the 2nd defendant.

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“Whether by a proper construction and interpretation of the provisions of Section 63(3) of the Petroleum Industry Act, 2021, the 1st defendant can lawfully remove the plaintiff as the non-executive chairman of the 2nd defendant for any reason(s) outside the conditions specifically listed in the said Section 63(3) of the Petroleum Industry Act, 2021.

“Whether the plaintiff as the non-executive chairman of the 2nd defendant for a fixed term of 5 (five) years with effect from the 21st Day of September 2021, can be lawfully removed from office by the 1st defendant at will and without compliance with the strict provisions of Articles 21.3, 21.4, and 24 of the memorandum and Articles of Association of the 2nd defendant, Section 63(3) of the Petroleum Industry Act, 2021 and Section 288 of the Companies and Allied Matters Act, 2020.

“Whether the purported removal of the plaintiff as a non-executive chairman of the 2nd defendant vide the letter dated the 17th Day of January, 2022 without compliance with the strict provisions of Articles 21.3, 21.4 and 24 of the Memorandum and Articles of Association of the 2nd defendant, Section 63(3) of the Petroleum Industry Act, 2021 and Section 288 of the Companies and Allied Matters Act, 2020 is not wrongful, illegal, null and void and of no legal consequence whatsoever.”

The former senator sought the following reliefs;

“A declaration of this Honourable Court that by the provisions of Section 63(3) of the Petroleum Industry Act, 2021, the 1st defendant cannot lawfully remove the plaintiff as the non-executive chairman of the 2nd defendant for any reason(s) whatsoever outside the conditions specifically listed in the said Section 63(3) of the Petroleum Industry Act, 2021.

“An order of this Honourable Court setting aside the removal of the plaintiff as the non-executive chairman of the 2nd defendant vide the 1st defendant’s letter dated the 17th Day of January, 2022 with reference no: SGF.3/VIII/86.

“An order of this Honourable Court reinstating the plaintiff forthwith and restoring him to his office with all the appurtenant rights and privileges of his office as the non-executive chairman of the 2nd defendant.

“The sum of N100,000,000,000 (One Hundred Billion Naira) being damages for the wrongful removal, disruption and interruption of the term of office of the plaintiff as the non-executive chairman of the 2nd defendant.”

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