Arbitration tribunal dismisses claims as Nigeria avoids $6.2m liability in dispute with UK contractor

Nigeria has secured a decisive victory in an international arbitration, with a tribunal dismissing all claims brought against the country by European Dynamics UK Ltd, thereby shielding the government from a potential financial exposure exceeding $6.2 million (about ₦9.3 billion).

The dispute stemmed from a national e-Procurement project executed through the Bureau of Public Procurement. The arbitral panel ruled fully in Nigeria’s favour, rejecting the contractor’s demands for payments and damages linked to the project.

Confirming the outcome in a statement issued on Sunday, the Special Assistant to the President on Communication and Publicity in the Office of the Attorney General of the Federation, Kamarudeen Ogundele, described the ruling as conclusive.

“In another victory for the administration of President Bola Ahmed Tinubu, Nigeria, through the BPP, has yet again won a complex international arbitration. European Dynamics UK Ltd had entered into a dispute with the bureau over a national e-Procurement project.

“In the ruling, which is final and not subject to appeal, the tribunal dismissed the contractor’s claims in their entirety, relieving Nigeria of potential financial exposure estimated at over $6.2 million,” the statement read.

European Dynamics had sought $2.4 million for alleged milestone achievements, $3 million as general damages, and a further $800,000 as settlement claims.

Reacting to the judgment, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, declared that the verdict signalled a turning point.

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“It is no longer business as usual,” he said.

Nigeria’s legal team was led by Johnson & Wilner LLP, with Basil Udotai, Esq., acting as lead counsel.

The Director-General of the BPP, Dr Adebowale Adedokun, inherited both the arbitration and the stalled technology project upon assuming office. The contract at the centre of the dispute covered the design, development, supply, installation and maintenance of a national electronic Government Procurement system, supported by the World Bank, and intended to strengthen transparency and efficiency in federal procurement.

A major issue before the tribunal was the User Acceptance Test conducted by the bureau, which reportedly exposed significant functional shortcomings, including missing features and performance failures. The BPP maintained that software customisation contracts are performance-based and that delivery is only complete when User Acceptance Testing confirms full compliance with contractual requirements.

The tribunal agreed, holding that responsibility for fixing the deficiencies rested with the vendor at no additional cost. It further ruled that the contractor, as the technical expert, was obliged to meet contractual standards regardless of any prior approvals of technical documents.

The panel also found no basis for merging multi-phase modules into a single phase, stressing that the contract clearly provided for phased payments.

“Nothing in the contract suggests that such a merger is permissible, particularly given that payment is structured in phases.

“Consequently, the contractual framework was distorted,” the ruling stated.

All claims by the contractor were accordingly dismissed.

Presenting the award to the Attorney General, Adedokun described the outcome as a landmark moment for public-sector technology contracting in Nigeria.

“This particular vendor has taken various African countries to court and won every single case. Nigeria is the first to defeat them.

“We stood our ground against one of the best legal teams in the world because we believed in the expertise of our own Nigerian legal professionals,” he said.

He thanked Fagbemi for approving the continuation of the arbitration, noting that the decision prevented the loss of billions of naira that can now be redirected to national development.

Responding, Fagbemi commended the BPP leadership and the legal team for their resolve.

“Nigeria is a country blessed with both natural and human resources. This win sends a clear message to the international community: Nigeria has resonated. It is no longer business as usual. By standing up to European Dynamics, we have instilled courage in other African nations to protect their own resources,” he said.

The minister also praised the administration of President Bola Ahmed Tinubu for supporting institutional strengthening within the justice sector.

According to the statement, the ruling underscores the importance of rigorous User Acceptance Testing, clear milestone definitions and expert-led software delivery standards in government technology projects. Lessons from the case are expected to inform ongoing e-procurement reforms aimed at improving contract oversight and reducing the risk of future disputes.

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