Nigeria has secured victory in a 6.2 million dollar arbitration case against European Dynamics UK Ltd over a disputed national e-Procurement project.
This was disclosed in a statement by Mr. 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 ministry, the dispute arose between the contractor and the Bureau of Public Procurement (BPP) concerning the design and implementation of a national electronic Government Procurement (eGP) system supported by the World Bank.
The arbitration tribunal, sitting at the International Centre for Arbitration and Mediation in Abuja, dismissed the contractor’s claims in their entirety. The sole arbitrator, Mrs. Funmi Roberts, ruled that the claims—amounting to over 6.2 million dollars (approximately ₦9.3 billion)—were not substantiated.
European Dynamics had sought about 2.4 million dollars for alleged milestone completions, 3 million dollars in general damages and an additional 800,000 dollars as settlement claims.
The ministry explained that the dispute centred on the User Acceptance Test (UAT), which reportedly identified major functional deficiencies in the software system, including omissions and errors affecting performance.
The BPP maintained that in software customisation projects, delivery is validated only after successful performance testing. It argued that payment must be tied strictly to demonstrable value delivered and satisfactory system functionality.
The tribunal upheld Nigeria’s position, ruling that the contractor, as the technical expert, was responsible for remedying the deficiencies at no additional cost. It further held that there was no contractual basis for merging multi-phase modules into a single phase, especially as payments were structured in phases.
The Director-General of the BPP, Dr. Adebowale Adedokun, described the outcome as a significant milestone for public sector technology contracting, noting that the contractor had previously won arbitration cases in other African countries.
“Nigeria is the first to defeat them. We stood our ground because we believed in the expertise of our own Nigerian legal professionals,” he said.
The Attorney-General commended the BPP leadership and the legal team for their resilience and professionalism, describing the judgment as a strong signal that Nigeria is committed to accountability and due process.
He added that the victory would save the country billions of naira that could now be redirected toward national development priorities.
Nigeria’s legal team was led by Johnson & Wilner LLP, a Nigerian business and technology law firm, with Basil Udotai, Founding Partner, heading the arbitration proceedings alongside strategic partners and associates.