Nigeria wins $6.2m arbitration case against European tech firm

Nigeria has secured a major victory in an international arbitration after a tribunal dismissed all claims brought by European Dynamics UK Ltd over a national e-procurement project dispute.

The case, handled by the Bureau of Public Procurement, sought more than $6.2 million in alleged payments and damages.

The ruling, described as final and not subject to appeal, relieved Nigeria of a potential financial liability estimated at about ₦9.3 billion.

The dispute centred on a contract covering the design, development, installation and maintenance of a national electronic Government Procurement (eGP) system supported by the World Bank to improve transparency and efficiency in federal procurement.

According to officials, the contractor claimed roughly $2.4 million for milestone completions, $3 million in general damages and an additional $800,000 as settlement costs.

However, the Bureau maintained that payments were tied to verifiable delivery and performance of the system.

The tribunal agreed with Nigeria’s position, citing deficiencies identified during the User Acceptance Test, including functional gaps and performance errors. It held that the vendor, as the technical expert, was responsible for remedying those issues without additional payment and found no evidence supporting the contractor’s claim that project phases had been merged.

Nigeria’s legal team was led by Johnson & Wilner LLP, with founding partner Basil Udotai coordinating the arbitration alongside strategic partners.

Speaking during the presentation of the award to the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, Director-General of the Bureau, Adebowale Adedokun, described the outcome as a landmark for public sector technology contracting. He said Nigeria’s decision to continue with arbitration instead of pursuing an out-of-court settlement helped prevent the loss of billions of naira.

Fagbemi commended the Bureau and the legal team, saying the victory signals that Nigeria will firmly defend its interests in international commercial disputes and strengthen institutional accountability.

Officials said the ruling highlights the importance of rigorous User Acceptance Testing, clear milestone definitions and stronger oversight in government technology projects.

The Bureau added that lessons from the case will inform ongoing e-procurement reforms aimed at reducing future contract disputes.