Nigeria has successfully defended itself in a $6.2 million international arbitration case brought by European Dynamics UK Ltd, marking a significant legal victory in a dispute tied to the country’s national electronic Government Procurement (e-GP) platform.
The arbitration arose from a contractual disagreement between the Bureau of Public Procurement (BPP) and European Dynamics UK Ltd, an international technology contractor engaged to design and deploy Nigeria’s national e-procurement infrastructure.
According to an official statement issued by Kamarudeen Ogundele, Senior Assistant on Communication and Publicity to the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, SAN, the tribunal dismissed all claims filed by the contractor.
The arbitration proceedings were heard at the International Centre for Arbitration and Mediation, Abuja, where Mrs. Funmi Roberts served as Sole Arbitrator. The ruling, which is final and binding with no right of appeal, resolved the matter entirely in Nigeria’s favour.
European Dynamics had sought a total of approximately $6.2 million in claims. This included $2.4 million allegedly due for milestone completions, $3 million in general damages, and an additional $800,000 under settlement claims. The tribunal rejected these claims in their entirety, shielding Nigeria from financial exposure estimated at over $6.2 million — equivalent to roughly ₦9.3 billion.
The dispute centered on the execution of a World Bank-supported contract for the development, customization, installation, and maintenance of a national e-Government Procurement system. The project was designed to enhance transparency, accountability, and operational efficiency across federal procurement processes.
At the core of the disagreement was the User Acceptance Test (UAT), a performance validation exercise conducted by the BPP. The bureau identified substantial functional gaps in the delivered system, including material omissions and system errors that impaired operational performance.
The BPP maintained that in software customization contracts, delivery is not established merely by physical installation or documentation approval. Rather, delivery is achieved only after successful completion of performance validation, confirming that the system operates in compliance with agreed technical specifications, statutory workflows, and the intended operational environment.
The tribunal upheld Nigeria’s position, affirming that the identified deficiencies were within the contractor’s scope of responsibility and should be remedied without additional financial claims. It further held that the contractor, as the technical expert, bore the obligation to ensure the system met contractual standards, regardless of any preliminary documentation previously reviewed by the BPP.
The tribunal also found no contractual basis supporting the contractor’s attempt to consolidate multi-phase modules into a single implementation phase. The agreement clearly structured payments in phases, and no provision authorized such a merger.
Dr. Adebowale Adedokun, Director-General of the BPP, inherited both the stalled project and ongoing arbitration proceedings upon assuming office. Prior to his appointment, discussions had reportedly been initiated regarding a potential out-of-court settlement. However, the bureau opted to continue the arbitration process, insisting that payments must correspond strictly to verified value delivered.
During a formal presentation of the arbitration award to the Minister of Justice, Adedokun described the outcome as a defining moment for public sector technology contracting in Nigeria.
He noted that the contractor had previously prevailed in similar disputes across other African jurisdictions, making Nigeria the first country to defeat the firm in arbitration. He emphasized that the government’s decision to proceed with the case was rooted in confidence in Nigerian legal expertise.
Attorney-General Lateef Fagbemi commended the BPP leadership and the legal team for their strategic resolve. He described the ruling as a strong signal to international contractors that Nigeria is committed to contractual discipline and institutional strengthening.
The minister further acknowledged the sustained support of the President in advancing justice sector reforms and strengthening public institutions.
Legal representation for the BPP was led by Johnson & Wilner LLP, a Nigerian business and technology law firm, with Basil Udotai serving as lead counsel alongside strategic partners and associates.
The ministry indicated that lessons drawn from the arbitration would be integrated into ongoing e-procurement reforms to reinforce contract oversight and mitigate future disputes.
