Dapo Akinrefon

Some legal and energy experts have enumerated possible implications of the recent court judgment of a Federal High Court, Abuja, that reinstated Ifeanyi Araraume as board chairman of the Nigeria National Petroleum Company Limited, NNPCL.

Justice Inyang Ekwo of the court ruled in a N100 billion suit by Ararume, in which he challenged his replacement on the NNPCL board by President Muhammadu Buhari in January 2022.

Buhari appointed Ararume, a senator, as the non-executive chairman of the NNPC Limited but later suspended the appointment, replacing him with Margret Okadigbo.

Commenting on the implications of judgment, a Professor of Petroleum Economics, Omowumi Iledare, said the judgment would not have any major effect on the economy or the oil industry because he doesn’t see Araraume being reinstated.

Iledare 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, PIA, 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 would not be negatively affected by the court verdict.

According to him, the Federal Government can appeal the judgment and a situation of status quo ante would be maintained.
President Buhari has sued for calm from all parties involved in the board chairmanship tussle of the Nigerian National Petroleum Company Limited, saying due process would take its course.

However, energy expert, Debo Fagbemi, said the verdict was victory for the PIA as it has shown that it was no longer business as usual. He said the development has also revealed the possibility of the NNPCL achieving its objectives since it wouldnow be governed by CAMA law.

Fagbemi said the reinstatement of Araraume was a positive one for the economy and the oil industry.

Meanwhile, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, CPPE, Muda Yusuf, warned that the court verdict has the potential to disrupt major investment decisions.

Yusuf said the reinstated chairman of the board could decide to work on the probability that NNPCL has not been fully subjected to operate as a commercial entity, which some stakeholders had suggested should be quoted on the stock exchange locally and internationally.

He said: “You know that the NNPCL is now governed by CAMA and it is expected to operate with minimal political interference.
“There is a high level of corporate governance compliance expectations and the NNPCL is expected to operate within the framework of the Petroleum Industry Act, PIA.”

Meanwhile, Abdul Balogun, a Senior Advocate of Nigeria, SAN, noted that the government has no choice but to obey the judgement of the court, unless it decides to appeal it.

“Not obeying the judgment will send the wrong signal to the international business community,” Balogun cautioned.

“If the government feels it has a strong case, it can appeal the judgment up to the Supreme Court. But not obeying the judgment of the court is dangerous for the image of the country because it will send a wrong signal to the international business community.”
On his part, another lawyer, Fidelis Amobi, said: “Despite Araraume winning his case in court, I think a political solution should be deployed to resolve the situation that has been created by the judgment of the court. Otherwise, the government may not be able to manage the situation.