By Ebi Kesiena
Nigeria has recorded a major legal victory in an international arbitration dispute with European technology contractor, European Dynamics UK Ltd, saving the country from a potential financial liability exceeding $6.2 million (about ₦9.3 billion).
The dispute stemmed from a national e-Procurement project handled by the Bureau of Public Procurement (BPP), with the arbitral tribunal dismissing all claims filed by the contractor.
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 final and not subject to appeal. He noted that the decision relieved Nigeria of significant financial exposure following a complex international arbitration process.
European Dynamics UK Ltd had sought $2.4 million for alleged project milestone completions, $3 million in general damages, and an additional $800,000 in settlement claims. However, the tribunal rejected the claims entirely, upholding Nigeria’s position in the dispute.
The Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, welcomed the outcome, declaring that “it is no longer business as usual,” while commending the legal and institutional teams involved. Nigeria’s defence was led by Johnson & Wilner LLP, with Basil Udotai serving as lead counsel.
The contract at the centre of the dispute involved the design, development, installation, and maintenance of a national electronic government procurement platform supported by the World Bank to improve transparency and efficiency in federal procurement processes.
According to the BPP, a User Acceptance Test revealed major functional deficiencies, including system performance failures and critical omissions. The bureau argued that delivery under software customisation contracts is only complete after successful performance validation.
The tribunal agreed, ruling that the identified deficiencies were the contractor’s responsibility to fix at no additional cost. It further held that the vendor, as technical expert, remained accountable for ensuring compliance with contractual requirements regardless of earlier document approvals.
Meanwhile, BPP Director-General, Dr Adebowale Adedokun, described the ruling as a landmark outcome, noting that the contractor had previously won arbitration cases against several African countries, making Nigeria the first to successfully challenge it.
