Nigeria has secured a major victory in an international arbitration dispute with European Dynamics UK Ltd, averting a potential financial liability of more than $6.2 million (about ₦9.3 billion).
The dispute stemmed from a national e-Procurement project handled by the Bureau of Public Procurement (BPP).
An arbitral tribunal dismissed all claims brought by the contractor, bringing the matter to a close.
In a statement released on Sunday, Kamarudeen Ogundele, Special Assistant to the President on Communication and Publicity in the Office of the Attorney General of the Federation, described the award as “final and not subject to appeal.”
“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.
The contractor had sought $2.4 million for alleged completion of milestones, $3 million in general damages, and an additional $800,000 in settlement-related claims.
Reacting to the outcome, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, said “it is no longer business as usual.”
Nigeria’s legal representation 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 stalled project and the dispute upon assuming office.
The underlying contract covered the design, deployment, installation and maintenance of a national electronic Government Procurement system backed by the World Bank, aimed at promoting transparency and efficiency in federal procurement.
At the heart of the disagreement was a User Acceptance Test conducted by the bureau, which reportedly uncovered serious functional gaps, including critical omissions and system performance failures.
The BPP maintained that software customisation contracts are performance-based, meaning completion is only achieved once User Acceptance Testing confirms the system meets contractual and operational standards. The tribunal agreed with Nigeria’s position, ruling that the identified defects were the vendor’s responsibility to correct without extra cost.
The panel further held that, as the technical expert, the contractor bore the obligation to ensure compliance with contractual requirements, regardless of any earlier approvals of technical documentation.
It also rejected claims that the bureau had approved the merger of multiple project phases into a single phase, noting that payments were structured in stages.
“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 were ultimately dismissed.
During a formal presentation of the arbitral award to the Attorney General, Adedokun described the decision as a landmark for public-sector technology contracts.
“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 expressed appreciation to Fagbemi for approving the continuation of the arbitration, noting that the decision shielded the country from losing billions of naira that can now be redirected toward development priorities.
In his response, Fagbemi commended the BPP leadership and the legal team for what he called courage and excellence.
“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 acknowledged the support of President Bola Tinubu’s administration in strengthening institutions within the justice sector.
According to the statement, the ruling underscores the importance of thorough User Acceptance Testing, well-defined milestones, and expert-led software delivery in government ICT projects. Authorities say insights from the arbitration will inform ongoing e-procurement reforms to tighten contract oversight and reduce the likelihood of future disputes.
