Nigeria has secured a $6.2 million arbitration victory against UK-based technology firm European Dynamics UK Ltd over a disputed national e-procurement contract.
The ruling, delivered on February 3 by sole arbitrator Funmi Roberts at the International Centre for Arbitration and Mediation, dismissed the contractor’s claims in full.
The dispute stemmed from a contract awarded by Nigeria’s Bureau of Public Procurement (BPP) for the design and implementation of a national electronic government procurement (e-GP) platform. The project, backed by the World Bank, aimed to boost transparency and efficiency in federal procurement.
European Dynamics had sought $2.4 million for alleged milestone completions, $3 million in general damages and $800,000 in settlement claims a total exposure of over $6.2 million (about N9.3 billion).
However, the tribunal ruled that the claims lacked merit. It held that deficiencies uncovered during the user acceptance test (UAT) including functional gaps and performance errors were the contractor’s responsibility to fix at no extra cost.
According to a statement by Kamarudeen Ogundele, special adviser in the office of the attorney-general, the award is final and not subject to appeal.
The BPP insisted that payments must be tied strictly to verified deliverables, rejecting earlier moves towards an out-of-court settlement. The tribunal agreed, stressing that software customisation contracts are performance-based and must meet technical and statutory standards before payment.
Nigeria’s legal team was led by Johnson & Wilner LLP, with Basil Udotai heading the arbitration.
Speaking after the award presentation to Attorney-General Lateef Fagbemi, BPP Director-General Adebowale Adedokun described the outcome as historic.
He noted that the company had previously won arbitration cases against several African countries but lost to Nigeria.
“This win sends a clear message that Nigeria can no longer be taken for granted,” Fagbemi said.
