Nigeria has secured a major international arbitration victory after a tribunal dismissed in its entirety a $6.2 million claim filed by European Dynamics UK Ltd against the Federal Government over a national e-procurement project.
The case, which is final and not subject to appeal, was decided in favour of Nigeria through the Bureau of Public Procurement (BPP), sparing the country from potential financial exposure estimated at over $6.2 million (approximately ₦9.3 billion) in claimed payments and damages.
The development was announced in a statement signed by Kamarudeen Ogundele, Special Assistant to the President (Communication and Publicity), Office of the Attorney General of the Federation and Minister of Justice.
The arbitration involved European Dynamics UK Ltd, an international technology contractor, which had entered into a dispute with the BPP over the design and implementation of a national electronic Government Procurement (eGP) system financed with support from the World Bank.
Nigeria’s legal team was led by Johnson & Wilner LLP, a Nigerian business and technology law firm, with its Founding Partner, Basil Udotai, leading the arbitration alongside strategic partners and associates.
How the Dispute Began
According to the statement, the Director-General of the BPP, Dr Adebowale Adedokun, inherited both the stalled technology project and ongoing arbitration proceedings upon assuming office.
European Dynamics UK Ltd had claimed approximately $2.4 million for alleged milestone completions, $3 million in general damages and an additional $800,000 in settlement claims.
Before Adedokun’s appointment, there had been discussions about an out-of-court settlement. However, the Bureau opted to continue with arbitration, maintaining that payments must be strictly tied to demonstrable value delivered.
The dispute centred on the User Acceptance Test (UAT) conducted by the BPP, which identified significant functional deficiencies, including critical omissions and errors affecting system performance.
The Bureau argued that unlike conventional supply contracts where delivery occurs upon physical handover, software customisation projects are performance-validated, and delivery crystallises only upon satisfactory UAT confirming compliance with technical requirements and statutory workflows.
The tribunal upheld Nigeria’s position, ruling that the deficiencies fell within the vendor’s responsibility to remedy at no additional cost. It further held that the contractor, as the technical expert, bore the obligation to ensure compliance with contractual requirements, regardless of any earlier technical documents approved by the BPP.
The tribunal also found no evidence that the Bureau consented to merging multi-phase modules into a single phase.
“Nothing in the Contract suggests that such a merger is permissible, particularly given that payment is structured in phases. Consequently, the contractual framework was distorted,” the tribunal ruled.
All claims by European Dynamics UK Ltd were consequently dismissed.
‘Nigeria Can No Longer Be Taken for Granted’ — BPP DG
Presenting the award to the Attorney General of the Federation and Minister of Justice, Prince Lateef Fagbemi (SAN), Dr Adedokun described the outcome as a turning point in public sector technology contracting.
“This particular vendor has taken various African countries to court and won every single case. Nigeria is the first to defeat them. We stood our ground against one of the best legal teams in the world because we believed in the expertise of our own Nigerian legal professionals,” he said.
Adedokun expressed appreciation to the Attorney General for approving the continuation of the arbitration, noting that without such support, Nigeria could have lost billions of naira now preserved for critical national development.
‘It’s No Longer Business as Usual’ — AGF Fagbemi
Responding, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, commended Adedokun and the legal team for their courage and expertise.
“Nigeria is a country blessed with both natural and human resources. This win sends a clear message to the international community: Nigeria has resonated. It is no longer business as usual. By standing up to European Dynamics, we have instilled courage in other African nations to protect their own resources,” he said.
Fagbemi also praised President Bola Ahmed Tinubu for sustained support toward strengthening institutions within the justice sector.
“We have a leader, mentor and father that can always watch our back. If he says leave it, we have no choice… he wants to nurture strong institutions,” the minister added.
Implications for Future Contracts
The statement noted that the ruling underscores the importance of rigorous User Acceptance Testing, clear milestone definitions and expert-driven software delivery standards in government technology projects.
Nigeria’s legal representatives encouraged incorporating lessons from the arbitration into ongoing e-procurement reforms to strengthen oversight of contract performance and reduce the risk of future disputes.
The arbitration victory marks one of the most significant recent international legal wins for Nigeria in the technology contracting space, reinforcing what officials describe as a new era of institutional assertiveness and fiscal responsibility.
