Only 24 hours after a Federal High Court in Abuja reinstated Senator Ifeanyi Araraume as the non-executive Chairman of the Nigeria National Petroleum Corporation (NNPC) Limited and awarded him N5 billion in damages, President Muhammadu Buhari announced yesterday that the court decision would be appealed.
On January 5, 2022, the President named the NNPCL’s board of directors and management, replacing Araraume with Margery Okadigbo.
On Wednesday, presidential spokeswoman Femi Adesina indicated that procedures to appeal the verdict had already begun.
“The administration respects the rule of law, and nothing will be done outside of it to resolve the matter. President Buhari has taken due notice of the judgment by the Federal High Court in Abuja, restoring Senator Araraume as the non-executive Chairman of the NNPCL. While the Office of the Attorney-General of the Federation/Minister of Justice is yet to receive a formal copy of the ruling, the President affirms that due judicial process will be followed, and NNPCL has already taken steps to go on appeal.
The administration will not attempt to handle the issue outside of the law because it respects it. In a statement released on Wednesday and signed by his spokesman, Femi Adesina, the man demands composure from all parties.
Legal and energy experts have listed potential effects of the court decision that restored Ifeanyi Ararume as board chairman of the NNPCL. Ararume disputed President Muhammadu Buhari’s decision to replace him on the NNPCL board in January 2022 in a N100 billion lawsuit, which was heard by Presiding Judge Inyang Ekwo of the Abuja Federal High Court.
According to a Professor of Petroleum Economics, Omowumi Iledare, the judgment will not have any major effect on the economy of Nigeria or the oil industry because he doesn’t see Araraume being reinstated. He said, “I am not a lawyer, but I believe the President has the power to appoint and fire. It is never unusual to withdraw a nomination. Looking at the Petroleum Industry Act, a nomination has to be ratified by the Senate. I don’t think he can be reinstated.”
Also, a professor of law and energy economics, Tayo Bello, said the economy of the nation will not be negatively affected by the court verdict. According to him, the federal government can appeal the judgment, and the status quo ante will be maintained.
However, energy expert Debo Fagbemi said the verdict is a victory for the PIA as it has shown that it is no longer business as usual. He said the development has also revealed the possibility of the NNPCL achieving its objectives since it will now be governed by CAMA law. He said the reinstatement of Araraume is a positive one for the economy and the oil industry.
Muda Yusuf, CEO of the Center for the Promotion of Private Enterprise (CPPE), also warned that the court ruling had the potential to disrupt significant investment choices. He noted that the development could weaken investor trust since they may perceive the NNPCL structure as unstable.
Frank, a lawyer and executive director of Citizens Advocacy for Social and Economic Rights (CASER), asked the federal government not to appeal the decision in the NNPCL’s best interests.
