Nigeria has recorded a significant legal victory after winning an international arbitration valued at over $6.2 million against European Dynamics UK Ltd, an international technology firm. The ruling, which is final and not subject to appeal, dismissed all claims brought against Nigeria, effectively shielding the country from potential liabilities estimated at about ₦9.3 billion in alleged payments and damages.
The arbitration was pursued through the Bureau of Public Procurement as part of ongoing reforms under the administration of Bola Ahmed Tinubu. The dispute arose from a national electronic procurement project, where the contractor alleged unpaid milestone completions, general damages, and settlement claims. The tribunal found these claims to be entirely without merit.
Nigeria’s legal defence was handled by Johnson & Wilner LLP, with Basil Udotai leading the arbitration alongside the firm’s partners and associates. The panel accepted Nigeria’s argument that the contractor failed to deliver a functional system that met contractual and technical requirements, particularly after failing the User Acceptance Test conducted by the Bureau of Public Procurement.
The contract centred on the development, customisation, installation, and maintenance of a national electronic Government Procurement system supported by World Bank financing. The system was designed to enhance transparency, accountability, and efficiency in federal procurement processes. The tribunal agreed that software delivery is performance-based and that payment obligations only arise after successful validation within the intended operational environment.
In its ruling, the tribunal held that the functional deficiencies identified during testing were the sole responsibility of the contractor to remedy at no additional cost. It further ruled that there was no contractual basis for merging multiple project phases into a single phase, noting that such an action distorted the agreed payment structure and contractual framework.
Presenting the arbitration award, the Director-General of the Bureau of Public Procurement, Adebowale Adedokun, described the outcome as a turning point for public-sector technology contracting. He noted that the firm had reportedly won similar cases against other African countries, making Nigeria the first to successfully defeat it in arbitration.
The Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, praised the resolve of the Bureau and the legal team, stating that the victory sends a clear signal that Nigeria will no longer be taken for granted in international commercial engagements. He added that the outcome reinforces confidence in Nigeria’s institutions and the capacity of local professionals to defend national interests.
The ruling is expected to influence future public-sector technology contracts by reinforcing the importance of strict performance validation, clearly defined milestones, and robust oversight. It also provides a strong precedent for protecting public funds and strengthening accountability in government procurement and technology partnerships.
