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| Nigeria secures a $6.2 million arbitration victory as the tribunal dismisses European Dynamics UK Limited’s claims over a disputed national e-procurement contract. |
By Precious E.
Nigeria has secured a $6.2 million victory in an international arbitration case filed by European Dynamics UK Limited over a disputed national e-procurement contract.
The arbitration tribunal dismissed all claims brought against the Bureau of Public Procurement (BPP), ending a legal battle that could have exposed the Federal Government to payments and damages estimated at about ₦9.3 billion.
Attorney-General of the Federation and Minister of Justice Prince Lateef Fagbemi described the outcome as a major legal success for the country.
The decision is final and cannot be appealed.
Nigeria Wins $6.2 Million Arbitration Case Over e-Procurement Project
The dispute arose from a contract for the design, development, installation, and maintenance of a national electronic Government Procurement (eGP) system. The project was backed by support from the World Bank and aimed at improving transparency and efficiency in federal procurement.
European Dynamics UK Limited claimed about $2.4 million for alleged completed milestones, $3 million in general damages, and an additional $800,000 in settlement-related claims.
However, Nigeria argued that payments were tied to verified performance, not just partial delivery.
At the center of the case was the User Acceptance Test (UAT), a process used to confirm whether a software system meets agreed technical and operational standards before payment is approved.
The BPP maintained that the system presented for acceptance contained serious functional gaps and errors that affected performance. It insisted that the contractor was responsible for correcting those issues at no extra cost.
The tribunal agreed with Nigeria’s position, holding that the deficiencies identified during testing fell within the vendor’s contractual obligations. It also ruled that the contractor, as the technical expert, bore responsibility for ensuring the system complied with agreed requirements.
In addition, the tribunal found no contractual basis for merging separate project phases into a single stage, noting that payments were structured in phases under the agreement.
The arbitration was conducted at the International Centre for Arbitration and Mediation in Abuja and presided over by sole arbitrator Mrs. Funmi Roberts.
Nigeria’s legal team was led by Johnson & Wilner LLP, with Basil Udotai serving as lead counsel, alongside other partners and associates.
Director-General of the BPP, Dr. Adebowale Adedokun, said the case was inherited alongside a stalled technology project and ongoing arbitration proceedings.
According to him, there had been earlier discussions about settling out of court. The bureau opted to continue with arbitration, arguing that public funds should only be released for confirmed value delivered.
He said the outcome protects public resources and sends a message about accountability in government technology contracts.
Fagbemi commended the BPP and the legal team, stating that the judgment reinforces Nigeria’s resolve to defend its financial interests in international disputes.
The Nigeria $6.2 million arbitration case highlights the growing scrutiny of public technology contracts, especially those involving foreign vendors.
As the government pushes forward with digital procurement reforms, the ruling sets a precedent on performance standards, milestone payments, and software validation requirements.
It also signals to contractors that compliance with technical specifications and phased payment structures will be strictly enforced.
With Nigeria seeking to strengthen transparency in public spending, the Nigeria $6.2 million arbitration case may shape how future government technology projects are structured and monitored.
For policymakers, the outcome reinforces the need for clear contract drafting, technical oversight, and strong legal defense in high-value international agreements.
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