Royal Ibeh
Nigeria has secured a major legal victory in an international arbitration dispute involving UK-based technology contractor European Dynamics UK Ltd, saving the country from a potential financial liability of $6.2 million, about N9.3 billion at current exchange rates.
The dispute arose from a national electronic Government Procurement (e-GP) project managed by the Bureau of Public Procurement (BPP), a reform initiative designed to digitise and enhance transparency across federal procurement processes.
According to a statement from the Office of the Attorney General of the Federation, the arbitral tribunal dismissed all claims brought by the contractor. The ruling is final and not subject to appeal.
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Claims rejected in full
European Dynamics had sought $2.4 million for alleged milestone completions, $3 million in general damages, and an additional $800,000 in settlement claims. The tribunal rejected each of these demands.
At the centre of the case was a User Acceptance Test (UAT) conducted by the BPP, which reportedly uncovered significant functional deficiencies in the software system, including critical omissions and performance failures.
Nigeria argued that software customisation contracts are performance-based and that delivery can only be considered complete once the system successfully passes User Acceptance Testing and meets contractual and operational requirements.
The tribunal upheld this position.
It ruled that the identified deficiencies were the vendor’s responsibility to remedy at no additional cost and held that, as the technical expert, the contractor bore the obligation to ensure compliance with contractual standards, regardless of prior technical document approvals.
The tribunal also rejected the contractor’s attempt to merge multi-phase modules into a single phase, noting that payments under the contract were clearly structured in stages. It found no contractual basis for such restructuring and concluded that the framework had been distorted.
All claims were consequently dismissed.
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“No longer business as usual”
Lateef Fagbemi, the attorney general of the Federation and minister of Justice, described the outcome as evidence that it is no longer business as usual in the defence of public funds.
The legal team representing Nigeria was led by Johnson & Wilner LLP, with Basil Udotai serving as lead counsel.
Adebowale Adedokun, the director-general of the BPP, who inherited the dispute and the stalled project upon assuming office, said the victory was particularly significant because the vendor had previously taken several African countries to arbitration and won.
According to him, Nigeria is the first to defeat the contractor in such proceedings.
He thanked the attorney general for approving the continuation of the arbitration, noting that the decision prevented the loss of billions of naira that can now be redirected toward national development priorities.
Strengthening procurement oversight
The underlying contract, supported by the World Bank, covered the design, development, installation, and maintenance of a national e-procurement platform intended to improve efficiency, accountability, and transparency in federal procurement.
Officials said the ruling reinforces the importance of rigorous User Acceptance Testing, clear milestone definitions, and strict performance validation in government technology projects.
For Nigeria, which is advancing broader procurement reforms, the case sets a precedent for stronger contract enforcement in public sector ICT engagements.
Beyond the immediate financial savings of $6.2 million, the decision signals a firmer institutional stance in managing complex cross-border technology contracts and defending public resources.
Under the administration of Bola Ahmed Tinubu, government officials say the win reflects growing legal and technical capacity within Nigeria’s institutions to navigate high-stakes international disputes and prevail.
Royal Ibeh
Royal Ibeh is a senior journalist with years of experience reporting on Nigeria’s technology and health sectors. She currently covers the Technology and Health beats for BusinessDay newspaper, where she writes in-depth stories on digital innovation, telecom infrastructure, healthcare systems, and public health policies.
Source: Businessday.ng | Read the Full Story…
