Nigeria has secured another victory in an international arbitration dispute, this time against European Dynamics UK Ltd, saving the country over $6.2 million in claims. The British firm had sought $2.4 million for alleged milestone completions, $3 million in general damages, and $800,000 in settlement claims related to an e-Procurement project managed by the Bureau of Public Procurement (BPP).
The arbitration, held at the International Centre for Arbitration and Mediation in Abuja, was overseen by sole arbiter Funmi Roberts. Nigeria’s legal team, led by Johnson & Wilner LLP and Basil Udotai, Esq., successfully defended the country against all claims.
Attorney-General of the Federation and Justice Minister, Lateef Fagbemi (SAN), described the ruling as “final and not subject to appeal,” emphasizing that it sends a strong message to contractors seeking to exploit public sector projects.
The dispute arose from a contract between European Dynamics UK Ltd and the BPP for the design, development, supply, installation, and maintenance of a national electronic Government Procurement (e-GP) system financed with World Bank support. Problems emerged during the User Acceptance Test (UAT), which identified critical deficiencies and errors affecting system performance.
The tribunal upheld Nigeria’s position that software delivery is validated through performance-based milestones, and that the vendor bore responsibility to remedy the deficiencies at no additional cost. It also found no evidence that the BPP approved the merger of multi-phase modules into a single phase, noting that the contractual framework for phased payments had been distorted by the contractor.
The arbitration process was guided by the BPP’s leadership under Director-General Dr. Adebowale Adedokun, who insisted on seeing the process through rather than opting for an out-of-court settlement.
Fagbemi praised the BPP’s commitment, noting that the ruling demonstrates Nigeria’s resolve in protecting its resources. He also commended President Bola Ahmed Tinubu for supporting institutional strengthening within the justice sector.
Dr. Adedokun highlighted that the vendor had previously won cases in multiple African countries, making Nigeria the first to successfully challenge them. He stressed the importance of rigorous UAT, clear milestone definitions, and expert-driven standards for government technology projects.
The ruling is seen as a landmark for public sector technology contracting in Nigeria and a warning to international firms attempting to exploit ambiguities in government projects.
