Nigeria wins $6.2m arbitration case against European tech girm

Nigeria has secured a major victory in an international arbitration dispute with European technology contractor European Dynamics UK Ltd, avoiding potential liabilities estimated at $6.2 million.

The arbitration tribunal dismissed all claims brought against the Bureau of Public Procurement (BPP) in connection with a national electronic Government Procurement (eGP) project, in proceedings approved and backed by the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN).

The ruling, which is final and not subject to appeal, spares Nigeria from paying approximately $2.4 million in alleged milestone claims, $3 million in general damages, and an additional $800,000 in settlement demands.

The dispute arose from a contract for the design, customisation, installation and maintenance of a national e-procurement platform supported by the World Bank. The project was intended to enhance transparency, accountability and efficiency in federal procurement processes.

Central to the disagreement was the outcome of the User Acceptance Test (UAT), which the BPP said revealed significant functional deficiencies and performance issues in the software system. The bureau maintained that payment under the contract was tied strictly to satisfactory performance validation, not merely to delivery of technical documentation or partial deployment.

The tribunal upheld Nigeria’s position, ruling that the identified deficiencies were the contractor’s responsibility to remedy at no additional cost. It also found no contractual basis for merging multi-phase modules into a single phase, as payments were structured in stages. Consequently, all claims by European Dynamics were dismissed.

Nigeria’s legal team was led by Johnson & Wilner LLP, with founding partner Basil Udotai heading the arbitration proceedings.

Speaking after receiving the arbitration award, Director-General of the BPP, Dr. Adebowale Adedokun, described the outcome as a significant milestone for public sector technology contracting. He noted that the contractor had previously succeeded in similar disputes in other African countries but was unsuccessful in this case.

Fagbemi commended the bureau and its legal team, stating that the decision sends a strong message about Nigeria’s commitment to protecting public resources and strengthening institutional accountability.