From Victor Osula, Abuja
Nigeria has secured a major legal victory after an arbitral tribunal dismissed in full a $6.2 million (about ₦9.3 billion) claim filed by European Dynamics UK Ltd, an international technology firm, over a disputed national electronic procurement project involving the Bureau of Public Procurement (BPP).
The outcome was disclosed in a statement issued by Kamarudeen Ogundele, Senior Assistant on Communication and Publicity to the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, SAN.
According to the statement, the tribunal (sitting at the International Centre for Arbitration and Mediation) dismissed all claims brought by the contractor. The ruling, delivered by Mrs Funmi Roberts, Sole Arbitrator, is final and not subject to appeal.
European Dynamics UK Ltd had demanded about $2.4 million for alleged milestone completions, $3 million in general damages and an additional $800,000 as settlement claims. The dispute arose from a contract for the design, development, customisation, supply, installation and maintenance of a national electronic Government Procurement (eGP) system, financed with support from the World Bank.
The ministry explained that the disagreement centred on the User Acceptance Test (UAT) conducted by the BPP, which uncovered significant functional deficiencies, including critical omissions and errors affecting system performance. The bureau argued that software customisation contracts are performance-based and that delivery is achieved only after a satisfactory UAT confirms compliance with technical, statutory and operational requirements.
In its findings, the tribunal upheld Nigeria’s position, ruling that the identified deficiencies were the contractor’s responsibility to remedy at no additional cost. It further held that European Dynamics, as the technical expert, bore the obligation to ensure full compliance with contractual requirements, regardless of any earlier technical documents approved by the BPP.
The arbitrator also found no evidence that the BPP consented to merging multiple project phases into a single phase, noting that the contract clearly structured payments in phases. Consequently, all claims by the contractor were dismissed in their entirety.
Dr Adebowale Adedokun, Director-General of the BPP, inherited the stalled project and the arbitration proceedings upon assuming office. While earlier discussions considered an out-of-court settlement, the bureau chose to proceed with arbitration, insisting that payments must be strictly tied to demonstrable value delivered.
Presenting the award to the Attorney-General, Adedokun described the outcome as a landmark for public-sector technology contracting, noting that the vendor had previously prevailed in similar disputes across Africa. He said Nigeria’s success reflected confidence in local legal expertise and institutional resolve.
Commending the victory, the Attorney-General praised the BPP leadership and the legal team, describing the ruling as a strong signal to the international community that Nigeria will firmly protect public resources. He added that the outcome would encourage stronger contract governance across the public sector.
Nigeria’s legal team was led by Johnson & Wilner LLP, with Basil Udotai, Founding Partner, spearheading the arbitration alongside the firm’s partners and associates. The ministry added that lessons from the case would be incorporated into ongoing e-procurement reforms to further strengthen oversight and reduce the risk of future disputes.
