Barely 24 hours after a Federal High Court in Abuja reinstated Senator Ifeanyi Araraume as the non-executive Chairman of the Nigeria National Petroleum Company (NNPC) Limited and awarded him N5bn in damages, President Muhammadu Buhari yesterday said the court verdict will be appealed.
The President on January 5, 2022 appointed the board and management of the NNPCL, replacing Araraume with Margery Okadigbo, widow of the late Chuba Okadigbo who was Buhari's running mate in the 2003 presidential election.
In a statement on Wednesday, Femi Adesina, presidential spokesperson, said steps have already been taken to appeal the verdict.
"The administration respects the Rule of Law, and nothing will be done outside it to resolve the matter. President Buhari has taken due notice of judgment by the Federal High Court, 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 respects the Rule of Law, and nothing will be done outside it to resolve the matter, the President says. He sues for calm from all sides involved. While the office of the attorney-general of the federation/minister for 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 respects the rule of law, and nothing will be done outside it to resolve the matter. He sues for calm from all sides involved," a statement signed by his spokesman, Femi Adesina, read on Wednesday.
Meanwhile, some legal and energy experts have enumerated possible implications of the court judgement that reinstated Ifeanyi Ararume as board chairman of the NNPCL. Inyang Ekwo, presiding judge of the Abuja federal high court ruled in a N100 billion suit filed by Ararume in which he challenged his replacement on the NNPCL board by President Muhammadu Buhari in January 2022.
According to a Professor of Petroleum Economics, Omowumi Iledare, the judgement will not have any major effect on the economy of Nigeria or the oil industry because he didn'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 nominate and withdraw a nomination. Looking at the Petroleum Industry Act, nomination has to be ratified by the Senate. I don't think he can be reinstated."
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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 judgement and a situation of status quo ante will be maintained.
However, energy expert, Debo Fagbemi, said the verdict is 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.
Also, the chief executive officer of the Centre For The Promotion Of Private Enterprise (CPPE), Muda Yusuf, cautioned that the court verdict has the potential to disrupt major investment decisions. He argued that the development may erode investors' confidence who, he said, may see the NNPCL structure as unstable.
A lawyer and executive director of Citizens Advocacy for Social & Economic Rights (CASER), Frank urged the federal government not to appeal the judgement in the interest of the NNPCL.
