Nigeria has successfully defended itself in a $6.2 million arbitration case brought by European Dynamics UK Ltd, an international technology contractor, over a national e-procurement project managed by the Bureau of Public Procurement (BPP).
The ruling, delivered by Sole Arbitrator Mrs Funmi Roberts at the International Centre for Arbitration and Mediation in Abuja, is final and not subject to appeal. It dismissed all claims by the contractor, protecting Nigeria from potential financial exposure estimated at over $6.2 million (approximately ₦9.3 billion). European Dynamics had sought $2.4 million for alleged milestone completions, $3 million in general damages, and $800,000 in settlement claims.
The dispute arose from a stalled e-government procurement (eGP) system financed with World Bank support, designed to enhance transparency, efficiency, and accountability in federal procurement processes. Central to the disagreement was the User Acceptance Test (UAT), which identified critical functional deficiencies, omissions, and errors affecting system performance.
The tribunal accepted Nigeria’s position that these deficiencies were the vendor’s responsibility to remedy at no additional cost. It also ruled that the contractor had failed to ensure compliance with contractual obligations, and that no consent had been given to merge multi-phase modules into a single phase. Consequently, all claims by European Dynamics were dismissed, and the contractual framework was deemed distorted.
Dr Adebowale Adedokun, Director-General of the BPP, praised the outcome as a landmark victory for public sector technology contracting in Nigeria. “This vendor has taken various African countries to court and won every single case. Nigeria is the first to defeat them. We stood our ground because we believed in the expertise of our own legal professionals,” he said.
Attorney-General and Minister of Justice, Lateef Fagbemi, SAN, commended the BPP and the legal team led by Johnson & Wilner LLP, noting the win reinforces Nigeria’s capacity to protect its resources and serves as an example for other African nations.
The Ministry of Justice further encouraged integrating lessons from the arbitration into ongoing e-procurement reforms to strengthen contract oversight and minimize future disputes.
