By Chibuike Nwabuko
ABUJA (PRECISE POST) – Nigeria has secured a major legal victory in international arbitration after successfully defending a $6.2 million claim filed by European technology contractor European Dynamics UK Ltd over a disputed national e-procurement project.
The ruling, described as final and not subject to appeal, dismissed the company’s claims in full, freeing Nigeria from potential liabilities estimated at more than $6.2 million (about ₦9.3 billion).
The case was handled on behalf of Nigeria by Johnson & Wilner LLP, with arbitration led by the firm’s founding partner, Basil Udotai.
The conflict arose from a contract for the design, development, installation and maintenance of a national electronic Government Procurement (eGP) system supported by the World Bank. The system was intended to improve transparency, accountability and efficiency in federal procurement processes.
When Adebowale Adedokun assumed office as Director-General of the Bureau of Public Procurement, he inherited both the stalled project and ongoing arbitration proceedings.
The contractor sought about $2.4 million for alleged milestone completions, $3 million in general damages and an additional $800,000 in settlement claims.
At the heart of the dispute was the User Acceptance Test (UAT), which the bureau said revealed major functional deficiencies in the software. Nigeria argued that in software customisation contracts, delivery is not complete until performance is validated — a position the tribunal upheld.
The tribunal ruled that the deficiencies were the vendor’s responsibility to fix at no additional cost and found no contractual basis for merging multiple project phases into one, a move that would have altered the payment structure.
All claims by the company were dismissed.
“Nigeria Can No Longer Be Taken for Granted”
Presenting the award to the Attorney-General of the Federation, Lateef Fagbemi, Adedokun described the outcome as a landmark for public sector technology contracting.
He noted that the contractor had previously won similar cases against other African countries, making Nigeria’s victory unprecedented.
According to him, Nigeria stood firm against what he described as one of the world’s strongest legal teams, relying on local legal expertise and strict adherence to performance-based contracting.
Fagbemi hailed the decision as a turning point, saying it signals a stronger stance in protecting national resources.
He credited the administration of Bola Ahmed Tinubu for supporting institutional reforms in the justice sector and strengthening government capacity to defend public interests in complex international disputes.
The attorney-general said the outcome should encourage other African nations to assert themselves in similar contractual disagreements.
Lessons for Future Government Tech Projects
Officials say the ruling reinforces the importance of rigorous user testing, clearly defined milestones and expert oversight in public sector technology contracts.
Legal advisers to the procurement bureau urged that lessons from the arbitration be incorporated into ongoing e-procurement reforms to improve contract monitoring and reduce the risk of future disputes.
The decision marks one of Nigeria’s most significant recent arbitration wins, and signals a tougher posture in enforcing accountability in major government technology projects.
