Experts have warned that the judgment by the Federal High Court in Abuja, Tuesday, reinstating Senator Ifeanyi Ararume as board chairman of the Nigeria National Petroleum Company Limited (NNPCL) will affect the long term stability of the company if it is not quickly addressed.
According to them, appealing the judgment would further worsen the chaotic situation thrown up by Tuesday’s judgment.
Justice Inyang Ekwo of the Federal High Court sitting in Abuja, held that Ararume’s removal was illegal, awarding the lawmaker N5 billion as general damages. Ekwo ordered that Ararume should be immediately reinstated by the federal government.
President Buhari had in September 2021 appointed Ararume as the non-executive chairman of the NNPC Limited but later suspended the appointment and replaced him with Margret Chuba Okadigbo.
Speaking with Blueprint, the Executive Director of Citizens Advocacy for Social & Economic Rights (CASER), Barrister Frank Tietie said the federal government should comply with the court order so as not to create a trust issue for NNPCL.
Tietie appealed to the federal government not to appeal the court judgment in the interest of the company.
According to him, it is important that the rule of law prevail due to the company’s international obligation.
Failure to do that, he said, would create a trust deficit for the company and affect its operations.
He said: “The judgment of a court is presumed to be obeyed by all parties until it is set aside. In the absence of any stay of execution, the judgment must be obeyed.’’
Similarly, a Senior Advocate of Nigeria, Mr Abdul Balogun, said the federal government should simply obey the judgment of the court first before appealing the judgment if it wants to.
He noted that by not obeying court judgment, the government will be sending a wrong signal to the international community.
“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. The government can’t afford not to obey the judgment, if it hopes to win investors’ confidence in the judicial system,” he said.
Alluding to Balogun’s position, constitutional lawyer Fidelis Amobi said the judgment will have a far reaching effect on the operations of the company.
Amobi fears that some decisions already taken by the board may be reversed by Ararume.
He said: “Despite Ararume 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.”
For energy expert Dan Kunle, the court judgment has thrown up the need for the government to at all times allow the Companies and Allied Matters Act (CAMA) to guide the rule of engagement for Directors of Limited Liability Companies.
