Nigeria has won a major international arbitration case after a tribunal dismissed a $6.2 million claim filed by European Dynamics UK Ltd, an international technology company.
The case was brought against the Bureau of Public Procurement (BPP) over a national electronic Government Procurement (eGP) system project. The ruling, which is final and cannot be appealed, frees Nigeria from paying about $6.2 million (approximately ₦9.3 billion) in alleged milestone payments and damages.
The e-procurement project was funded with support from the World Bank and was designed to improve transparency, accountability, and efficiency in federal government procurement processes.
Nigeria’s legal team was led by Johnson & Wilner LLP, a Nigerian law firm, with its Founding Partner, Basil Udotai Esq., leading the arbitration.
Background to the Dispute
When the Director-General of the BPP, Dr. Adebowale Adedokun, assumed office, he met a stalled technology project and an ongoing arbitration case. The company had claimed about $2.4 million for alleged completed project milestones, $3 million in general damages, and an additional $800,000 in settlement claims.
Although there had been earlier discussions about settling the matter out of court, the Bureau decided to continue with the arbitration. It insisted that payments must only be made for verified and satisfactory work delivered.
A key issue in the case was the User Acceptance Test (UAT), which is conducted to confirm that software works properly. The BPP said the test revealed serious technical problems, including missing functions and performance errors.
The Bureau argued that in software projects, delivery is only complete after successful testing confirms that the system meets all agreed requirements.
The tribunal agreed with Nigeria’s position. It ruled that the identified problems were the contractor’s responsibility to fix at no extra cost. The tribunal also found no evidence that the Bureau approved merging different project phases into one phase, especially since payments were structured in stages.
As a result, all claims by the company were dismissed.
Officials React
During the presentation of the award to the Attorney General of the Federation and Minister of Justice, Prince Lateef Fagbemi (SAN), Dr. Adedokun described the decision as a major achievement.
“This vendor has taken several African countries to court and won in all those cases. Nigeria is the first to defeat them,” he said.
“We trusted the competence of our Nigerian legal team and stood our ground.”
He added that the decision to proceed with arbitration saved Nigeria billions of naira that can now be used for national development.
In his response, the Attorney General praised the BPP leadership and the legal team.
“This victory sends a clear message that it is no longer business as usual. Nigeria will protect its resources and defend its contractual rights,” he said.
He also commended President Bola Tinubu for supporting efforts to strengthen public institutions.
What It Means
The ruling highlights the importance of proper testing, clear project milestones, and strict performance standards in government technology contracts.
Officials say lessons from the case will be applied to ongoing e-procurement reforms to improve contract management and prevent similar disputes in the future.
The decision is seen as a strong step in protecting public funds and strengthening Nigeria’s position in international commercial disputes.