Ifeanyi Ararume sues Buhari over withdrawal of NNPC board chairman appointment

A former senator, Ifeanyi Ararume, has sued President Muhammadu Buhari for the withdrawal of his appointment as non-executive chairman of the Nigerian National Petroleum Company (NNPC) Limited.

Mr. Ararume, who was appointed to the position in September 2021, was removed from his position shortly before the inauguration of the company's board of directors in January 2022.

The former gubernatorial candidate of Imo State filed a lawsuit in the Federal High Court in Abuja on September 12 challenging his dismissal some eight months earlier.

He argued that his dismissal was "unjustified" and amounted to "a disruption and interruption" of his term of office.

He said it violated various provisions of the Companies and Allied Matters (CAMA), 2020, the Petroleum Industry Act (PIA), 2021, and the company's memorandum and articles of association.

He prayed for damages of 100 billion naira and an order reinstating him in office.

He also urged the court to reverse all decisions that the board of NNPC Limited had taken since his wrongful removal.

Background

Mr. Buhari had in September 2021 appointed Mr. Ararume Non-Executive Chairman of NNPC Limited for a term of five years.

The appointment, pursuant to letter dated October 20, 2021 issued to him by Federation Government Secretary, Boss Mustapha, became effective as of September 21, 2021, the date on which NNPC Limited was incorporated as private company limited by the Corporate Affairs Commission (CAC).

The incorporation of the national oil company was necessitated by the entry into force of the Petroleum Industry Act 2021, which led to the break-up of the agency which had operated for decades as a public company.

The new council was originally scheduled to be inaugurated by President Buhari on November 24, 2021, but was suspended indefinitely without any reason given on the eve of the scheduled event.

The Presidency on January 5 made a further announcement of the appointment to the Board of Directors of NNPC Limited which revealed that Mr. Ararume's name had been replaced. The names of the other appointees remained on the list as previously announced in September 2021. No reason was given for the replacement of Mr. Ararume's name.

'Surprise'

Mr. Ararume said in his lawsuit that the January 7 inauguration of the board with another person named as the company's non-executive chairman surprised him.

He says he did not receive a letter dated January 17 informing him of the withdrawal of his appointment until 10 days after the installation of the council.

"That no reason whatsoever has been given by the 1st respondent in the said letter of January 17, 2022, justifying my alleged dismissal or withdrawal of my appointment as non-executive chairman of the 2nd defendant," he wrote in his affidavit. filed in support of his complaint.

"Why my dismissal is wrong"

He said he took office as non-executive chairman of the company on November 12, 2021, and in that capacity subsequently attended the 23rd World Petroleum Congress in Houston, Texas, USA.

After he was appointed, Mr. Ararume said, the inauguration was “just a ceremonial event” with no legal effect on his status and that of the other directors.

He said Mr Buhari had no power to remove him at will as his office was governed by the Companies and Allied Matters, 2020, the Petroleum Industry Act, 2021, and the Memorandum and Articles of Association company.

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He said he had never been found guilty of "one of the conditions precedent to the removal of a chairman/non-executive director of the 2nd defendant, as prescribed by the Industry Act 2021 Company and/or the 2nd Defendant's Articles of Association or the Companies and Related Matters Act 2020".

He added that he never resigned and that he was not dead.

"That I have never been adjudicated or declared bankrupt or insolvent and have at no time made any such arrangement or assignment, with my c...