The Federal Government of Nigeria has secured a decisive legal victory in a $6.2 million international arbitration case against European Dynamics UK Limited, ending a prolonged dispute over a national e-Procurement project involving the Bureau of Public Procurement (BPP).
The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, SAN, described the ruling as a complex international arbitration that further strengthens Nigeria’s legal standing under the administration of Bola Tinubu. The tribunal’s decision is final and not subject to appeal.
In its ruling, the arbitral tribunal dismissed all claims brought by European Dynamics, effectively relieving Nigeria of potential financial exposure estimated at ₦9.3 billion in alleged payments and damages. The claims included approximately $2.4 million for purported milestone completions, $3 million in general damages, and an additional $800,000 in settlement demands.
According to a statement signed by the AGF’s media aide, Kamarudeen Ogundele, Nigeria’s legal team was led by Johnson & Wilner LLP, with its founding partner, Basil Udotai, heading the arbitration alongside strategic partners and associates.
The dispute arose from a contract for the design, development, installation, and maintenance of a national electronic Government Procurement (eGP) system, financed with support from the World Bank. Central to the case was the User Acceptance Test (UAT), which revealed significant functional deficiencies in the delivered system.
The tribunal agreed with Nigeria’s position that software delivery is performance-based and only crystallises upon successful UAT. It ruled that the identified deficiencies were the vendor’s responsibility to remedy at no additional cost and found no contractual basis for merging phased deliverables to trigger payment.
The arbitration was conducted under the International Centre for Arbitration and Mediation Abuja, with Sole Arbitrator Funmi Roberts presiding.
Speaking after the award presentation, BPP Director-General Adebowale Adedokun said Nigeria is the first African country to defeat the vendor in court, describing the outcome as a strong signal for accountability in public sector technology contracting. The ruling underscores the importance of rigorous testing, clear milestones, and expert oversight in government IT projects.
