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Ararume Vs. Buhari: What PIA Says About NNPC Board Chairman’s Removal

On Wednesday, reports emerged that President Muhammadu Buhari had been sued for N100 billion by Senator Ifeanyi Ararume over the lawmaker’s removal as board chairman of the Nigeria National Petroleum Company Limited.

Ararume claims Buhari illegally replaced him when he constituted a nine-member board and management of the NNPC Limited in January 2022.

Buhari had in September 2021 appointed Ararume as chairman of the Nigerian oil company’s board but 24 hours before the inauguration of the board, the president suspended it without giving reasons.

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In a subsequent appointment made by the president, Ararume was swapped with Margret Chuba Okadigbo as chairperson while Mele Kyari was retained as the chief executive officer.

The Chairman Senate Committee on Local and Foreign Debts is now suing Buhari for his removal, saying it was unlawful and unconstitutional.

In the suit marked FHC/ABJ/CS/691/2022, the lawmaker wants the Federal High Court to determine whether his replacement did not contravene provisions of the Memorandum and Articles of Association of the NNPC, Companies and Allied Matters Act 2010 and the Petroleum Industry Act 2021, amongst others.

He wants the court to declare that his position as non-Executive Chairman of the NNPC is exclusively governed and regulated by CAMA 2020, PIA Act 2021 and the Memorandum of Association of the NPPC, if the suit is determined in his favour.

What Does The PIA Say?

The Petroleum Industry Act, 2021 was signed into law in August 2021 to provide legal, governance, regulatory, and fiscal framework for the petroleum industry. Its enactment led to incorporation of the NNPC Ltd as a commercial entity whose shares is entrusted with the government.

Under the PIA, President Buhari as the minister of petroleum heads the industry with a wide range of powers to formulate, monitor, and administer government policies.

Section 14 of the Act highlights the president’s power to suspend or remove members of the NNPC board and conditions that could result in such removal or suspension.

It reads, “A member of the Board of the Commission may be suspended or removed from office by the President, where the member—

“(a) is found to be— (I) unqualified for appointment under section 11 of this Act, (ii) unqualified subsequent to his appointment, or (iii) in breach of conflict of interest provisions in the Companies and Allied Matters Act or any regulation regarding conflicts of interest passed under this Act;

“(b) ceases to be an employee of the ministry or agency he represents on the Board of the Commission;

“(c) has demonstrated an inability to effectively discharge the duties of his office;

“(d) has been absent from the meeting of the Board of the Commission for three consecutive times without the consent of the Chairman or in the case of the Chairman, without the consent of the President, except where good reason is shown for the absence ;

“(e) is found guilty of serious misconduct by a court or tribunal of competent jurisdiction ; or

(f) has, under the law in force in any country—(1) been adjudged or declared bankrupt or insolvent and has not been discharged, (ii) made an assignment to or arrangement or composition with his creditors which has not been rescinded or set aside, or (iii) been declared to be of unsound mind.”

ifeanyi ararumeMargret Chuba OkadigboMele KyariMUHAMMADU BUHARINNPCnnpc ltd
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