Nigeria Wins $6.2m Arbitration Against European Tech Firm

Nigeria has secured a major legal victory after an international tribunal dismissed a $6.2 million claim filed by European Dynamics UK Ltd over a stalled national e-Procurement (eGP) project supported by the World Bank.

The contractor had claimed $2.4 million for alleged milestone completions, $3 million in general damages, and an additional $800,000 in settlement claims. Prior to the current leadership of the Bureau of Public Procurement (BPP), there were discussions around an out-of-court settlement. However, the Bureau chose to proceed with arbitration, insisting that payments must strictly reflect verified value delivered.

At the centre of the dispute was the User Acceptance Test (UAT), which the BPP said revealed significant functional deficiencies in the software system. The tribunal agreed, ruling that delivery in software contracts is only complete upon satisfactory performance validation.

The tribunal also rejected claims that the Bureau approved merging multiple project phases into one, noting that such restructuring would distort the contract’s phased payment framework.

In a final ruling not subject to appeal, Sole Arbitrator Mrs ‘Funmi Roberts dismissed all claims, saving Nigeria an estimated ₦9.3 billion in potential liabilities.

Nigeria’s legal team was led by Johnson & Wilner LLP, with Basil Udotai, Esq., spearheading the defence.

BPP Director-General Dr Adebowale Adedokun described the outcome as a signal that Nigeria “can no longer be taken for granted,” while Attorney-General of the Federation, Prince Lateef Fagbemi (SAN), said the victory shows it is “no longer business as usual” in protecting the country’s interests.