Nigeria has secured a major legal victory at an international arbitration tribunal, defeating a $6.2 million claim brought against it by European Dynamics UK Limited, a British technology company, over a disputed national e-procurement contract.
Gatekeepers News reports that the ruling, which is final and not subject to appeal, followed a prolonged arbitration arising from a contract for the design, development, installation, and maintenance of a national electronic government procurement (e-GP) platform supervised by the Bureau of Public Procurement (BPP). The project, supported by the World Bank, was intended to enhance transparency, accountability, and efficiency in federal procurement processes.
According to a statement by Kamarudeen Ogundele, Special Assistant to the President on Communication and Publicity in the Office of the Attorney General of the Federation (AGF), the tribunal dismissed all claims submitted by the UK firm, thereby relieving Nigeria of a potential financial liability of over $6.2 million, estimated at about ₦9.3 billion.
European Dynamics UK Limited had demanded $2.4 million for alleged completion of project milestones, $3 million as general damages, and an additional $800,000 in settlement claims. However, Nigeria contested the demands, insisting that the contractor failed to deliver a fully functional system as required under the contract.
Central to the dispute was the User Acceptance Test (UAT) conducted by the BPP, which reportedly uncovered major functional deficiencies, system performance failures, and critical omissions. The Nigerian government argued that, under software customization contracts, delivery is deemed complete only after the system successfully passes performance validation tests.
The arbitral tribunal upheld Nigeria’s position, ruling that the contractor was responsible for correcting all defects at no additional cost. It further held that the firm, as the technical expert, remained accountable for ensuring that the platform met contractual specifications, regardless of any earlier approvals of technical documents by the BPP.
Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, SAN, welcomed the ruling, describing it as a strong affirmation of Nigeria’s resolve to defend its contractual and financial interests. He said the outcome sends a clear signal that the country will no longer tolerate inflated claims, contractual breaches, or attempts to exploit public institutions.
The Director-General of the BPP, Dr. Adebowale Adedokun, also hailed the verdict as historic, noting that European Dynamics had previously won similar arbitration cases against several African countries, making Nigeria the first to successfully challenge the firm. He added that the decision underscores the importance of strict performance standards, rigorous testing, and expert oversight in public sector technology projects.
Nigeria’s legal team was led by Johnson & Wilner LLP, with Basil Udotai serving as lead counsel in the arbitration.
