Nigeria has recorded a major victory in an international arbitration case against European technology contractor European Dynamics UK Ltd, avoiding a potential financial liability of over $6.2 million (about ₦9.3 billion).
The dispute stemmed from a national e-Procurement project overseen by the Bureau of Public Procurement (BPP). An arbitral tribunal dismissed all claims brought by the contractor, bringing the matter to a close. According to a statement issued by Kamarudeen Ogundele, Special Assistant to the President on Communication and Publicity in the Office of the Attorney General of the Federation, the ruling is final and not subject to appeal.
The contractor had sought $2.4 million for alleged milestone completions, $3 million in general damages, and $800,000 in settlement claims. However, the tribunal rejected the claims in their entirety.
Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, welcomed the outcome, describing it as evidence that “it is no longer business as usual.” Nigeria’s legal team was led by Johnson & Wilner LLP, with Basil Udotai, Esq., serving as lead counsel.
The dispute was inherited by the Director-General of the BPP, Dr Adebowale Adedokun, alongside the stalled technology project. The underlying contract involved the development and maintenance of a national electronic Government Procurement system, supported by the World Bank to improve transparency, accountability, and efficiency in federal procurement.
A central issue in the case was the User Acceptance Test conducted by the BPP, which reportedly uncovered major functional deficiencies, omissions, and system performance errors. The bureau maintained that software customisation contracts must meet performance validation standards, meaning delivery is only complete once User Acceptance Testing confirms compliance with contractual requirements.
The tribunal upheld Nigeria’s position, ruling that the deficiencies were the responsibility of the contractor to fix at no additional cost. It also held that, as the technical expert, the contractor bore full responsibility for ensuring compliance with contractual obligations, regardless of prior technical approvals.
Additionally, the tribunal found no evidence that the BPP approved the merger of multi-phase modules into a single phase, noting that payments were clearly structured in phases. It concluded that such a merger distorted the contractual framework. All claims were consequently dismissed.
Adedokun described the decision as significant, noting that the contractor had previously won similar cases against other African countries, making Nigeria the first to defeat them in arbitration. He credited the strength and expertise of Nigerian legal professionals for the outcome.
Fagbemi commended both the BPP leadership and the legal team, stating that the victory sends a strong signal internationally and reinforces Nigeria’s commitment to protecting public resources. He also praised the administration of President Bola Ahmed Tinubu for supporting institutional strengthening within the justice sector.
The statement further emphasised that the ruling highlights the importance of strict User Acceptance Testing, clearly defined milestones, and expert-led software delivery standards in government technology projects. Lessons from the case will be integrated into ongoing e-procurement reforms to strengthen oversight and reduce the risk of future disputes.
