In a significant win for the administration of President Bola Ahmed Tinubu, Nigeria has prevailed in an international arbitration dispute with European Dynamics UK Ltd, a European technology contractor, saving the country from a potential liability of over $6.2 million (approximately ₦9.3 billion).

The Bureau of Public Procurement (BPP) successfully defended against claims related to a stalled national electronic Government Procurement (e-GP) system project, funded in part by the World Bank. The project involved the design, development, customization, supply, installation, and maintenance of the e-Procurement platform aimed at enhancing transparency, accountability, and efficiency in federal public procurement.

The Sole Arbitrator, Mrs. ‘Funmi Roberts, issued a final and non-appealable ruling dismissing all claims by European Dynamics UK Ltd in their entirety. The contractor had sought approximately $2.4 million for alleged milestone payments, $3 million in general damages, and an additional $800,000 in settlement claims.

The dispute centered on the User Acceptance Test (UAT), where BPP identified significant functional deficiencies, omissions, and errors in the system. Nigeria’s position—that delivery in software customization projects is only complete upon satisfactory UAT confirming compliance with technical, statutory, and operational requirements—was upheld.

The tribunal ruled that the vendor bore responsibility to remedy deficiencies at no extra cost and found no evidence supporting the contractor’s claims of approved mergers of project phases or contractual consent for such changes.Nigeria’s legal team, led by Johnson & Wilner LLP with Founding Partner Basil Udotai Esq. at the forefront, was praised for its expertise in technology contracting.

BPP Director-General Dr. Adebowale Adedokun, who inherited the stalled project and ongoing arbitration upon taking office, described the outcome as a landmark signal in public sector technology dealings.

“This vendor has taken various African countries to court and won every single case. Nigeria is the first to defeat them,” he said during a presentation of the award to Attorney General of the Federation and Minister of Justice, Prince Lateef Fagbemi (SAN). He emphasized that Nigeria “can no longer be taken for granted” and thanked the AGF for supporting the decision to proceed with arbitration rather than settle.

AGF Fagbemi hailed the victory as evidence that “it is no longer business as usual.” He commended Dr. Adedokun’s courage, the legal team’s brilliance, and President Tinubu’s backing for institutional strengthening. “This win sends a clear message to the international community: Nigeria has resonated…

By standing up to European Dynamics, we have instilled courage in other African nations to protect their own resources,” he stated.

The ruling highlights the critical role of rigorous testing, clear milestones, and performance-based standards in government tech contracts, with lessons to be applied to ongoing e-procurement reforms to minimize future disputes.Kamarudeen Ogundele Special Assistant to the President (Communication and Publicity) Office of the Attorney General of the Federation and Minister of Justice