In a major legal victory for the administration of President **Bola Ahmed Tinubu**, the Federal Government of Nigeria has defeated a $6.2 million international arbitration claim filed by European Dynamics UK over a national e-procurement project.
The arbitration tribunal, in a final ruling not subject to appeal, dismissed the contractor’s claims in their entirety, sparing Nigeria potential financial exposure estimated at over $6.2 million—approximately ₦9.3 billion in disputed payments and damages.
The dispute arose between the firm and the Bureau of Public Procurement (BPP) concerning the design, development, supply, installation, and maintenance of a national electronic Government Procurement (eGP) system.
The project, financed with support from the World Bank, was intended to enhance transparency, accountability,y and efficiency in federal procurement processes.
Upon assuming office, the Director-General of the BPP, Adebowale Adedokun, inherited both a stalled technology project and ongoing arbitration proceedings. European Dynamics UK Ltd had claimed approximately $2.4 million for alleged milestone completions, $3 million in general damages, and an additional $800,000 in settlement claims.
Although discussions for an out-of-court settlement had commenced before his appointment, Dr. Adedokun opted to proceed with arbitration, maintaining that public funds could only be disbursed for demonstrable and verified value delivered.
Nigeria’s legal team was led by Johnson & Wilner LLP, with Founding Partner Basil Udotai Esq. spearheading the proceedings alongside strategic partners and associates specializing in technology contracting.
At the heart of the dispute was the User Acceptance Test (UAT) conducted by the BPP, which reportedly uncovered significant functional deficiencies, critical omissions, and performance-related errors in the software system.
The Bureau argued that, unlike conventional supply contracts, software customisation projects are performance-validated and only deemed delivered upon satisfactory completion of UAT in line with contractual specifications and statutory workflows.
The tribunal upheld Nigeria’s position, ruling that the identified deficiencies fell squarely within the vendor’s obligation to remedy at no additional cost. It further held that the contractor, as the technical expert, bore full responsibility to ensure compliance with contractual requirements, regardless of any previously approved technical documentation.
Additionally, the tribunal found no contractual basis for the contractor’s decision to merge multi-phase modules into a single phase, particularly where payments were structured in phases.
“Nothing in the Contract suggests that such a merger is permissible… Consequently, the contractual framework was distorted,” the ruling stated.
After the claims by the UK firm were consequently dismissed, Adedokun, while presenting the arbitral award to the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, described the victory as a watershed moment in public sector contracting.
“This particular vendor has taken various African countries to court and won every single case. Nigeria is the first to defeat them. We stood our ground against one of the best legal teams in the world because we believed in the expertise of our own Nigerian legal professionals,” he said.
He thanked the AGF for approving the continuation of arbitration proceedings, noting that without decisive action, Nigeria could have lost billions of naira in public funds.
Responding, Fagbemi hailed the courage of the BPP leadership and the competence of the legal team, describing the outcome as a strong message to the international business community.
“This win sends a clear message: Nigeria is no longer business as usual. By standing up to European Dynamics, we have instilled courage in other African nations to protect their resources,” he said.
He also commended President Tinubu for his commitment to strengthening institutions within the justice sector, emphasizing the administration’s resolve to protect national interests.
The ruling is expected to have far-reaching implications for government technology procurement. It underscores the necessity of rigorous User Acceptance Testing, clear milestone definitions, and strict adherence to performance standards in software delivery contracts.
Legal representatives for the BPP advised that lessons from the arbitration be integrated into ongoing e-procurement reforms to enhance contract oversight, safeguard public funds, and reduce exposure to future disputes.
With the decisive arbitral victory, the Federal Government has not only avoided substantial financial liability but also reinforced its stance that public resources must be protected through accountability, technical diligence, and strong institutional resolve.
