NIGERIA WINS $6.2M IN ARBITRATION CASE AGAINST UK TECH COMPANY
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By: Balogun Ibrahim
Nigeria has secured a decisive win in an international arbitration involving European technology contractor European Dynamics UK Ltd, averting a potential financial liability exceeding $6.2 million (about ₦9.3 billion).
The case stemmed from a national e-Procurement project overseen by the Bureau of Public Procurement, with the arbitral tribunal dismissing all claims brought by the contractor.
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, said the ruling was final and not open to appeal.
He described the outcome as another major legal success for the administration of Bola Ahmed Tinubu, noting that Nigeria, through the BPP, once again prevailed in a complex international arbitration arising from the disputed e-Procurement project.
According to the statement, the tribunal’s decision—described as final and not open to appeal—threw out all claims filed by the contractor, thereby sparing Nigeria a potential financial liability estimated at more than $6.2 million.
The claims comprised $2.4 million allegedly owed for milestone achievements, $3 million in general damages, and a further $800,000 sought as settlement costs.
Reacting to the ruling, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, welcomed the outcome, stating that “it is no longer business as usual.”
Nigeria’s defence in the arbitration was handled by the law firm Johnson & Wilner LLP, with Basil Udotai acting as lead counsel.
The dispute and the abandoned technology project were inherited by the Director-General of the Bureau of Public Procurement, Adebowale Adedokun, upon his assumption of office.
The contract at the centre of the case covered the design, development, supply, installation and maintenance of a national electronic Government Procurement (e-GP) system, a project backed by the World Bank to promote transparency, accountability and efficiency in federal procurement.
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A key issue in the arbitration was the User Acceptance Test carried out by the BPP, which reportedly exposed major functional shortcomings in the system, including critical gaps and performance failures.
Nigeria argued that software customisation contracts are performance-based, with delivery deemed complete only after successful User Acceptance Testing confirms full compliance with contractual and operational standards.
The tribunal agreed with this position, ruling that the identified defects were the contractor’s responsibility and must be corrected at no additional cost. It further held that the contractor, as the technical expert, was obliged to ensure full compliance with contractual requirements, regardless of any prior approvals of technical documentation.
The arbitral tribunal further held that there was no evidence that the Bureau of Public Procurement agreed to the consolidation of multi-phase project modules into a single phase, stressing that the contract clearly structured payments on a phased basis.
The tribunal noted that nothing in the agreement permitted such a merger, especially given the phased payment structure, adding that any attempt to do so distorted the contractual framework. On this basis, all claims advanced by the contractor were dismissed.
Speaking during the formal presentation of the arbitral award to the Attorney General of the Federation, Adebowale Adedokun described the ruling as a landmark outcome for public sector technology contracting.
He said the contractor had previously taken several African countries to court and prevailed in every case, noting that Nigeria was the first to successfully defeat the firm. According to him, the victory was achieved by standing firm against a world-class legal team and relying on the competence of Nigerian legal professionals.
Adedokun also expressed appreciation to the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, for approving the continuation of the arbitration, adding that the decision averted the loss of billions of naira now available for national development.
Responding to the development, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, lauded the leadership of the Bureau of Public Procurement and Nigeria’s legal team, describing their efforts as marked by courage and exceptional professionalism.
He said the victory underscored Nigeria’s vast natural and human capital, adding that the outcome sent a strong signal to the international community that the country would no longer tolerate unfavourable contractual practices. According to him, standing up to European Dynamics UK Ltd has emboldened other African nations to safeguard their own resources.
Fagbemi also commended the administration of Bola Tinubu for its commitment to strengthening institutions within the justice sector.
The statement added that the ruling highlights the critical role of rigorous User Acceptance Testing, clearly defined milestones, and expert-led software delivery standards in public sector technology projects. It noted that insights from the arbitration would be integrated into ongoing e-procurement reforms to improve contract performance oversight and reduce the likelihood of future disputes.
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