Nigeria, through the Bureau of Public Procurement (BPP), has secured a major victory in an international arbitration case against European Dynamics UK Ltd over a national e-procurement project. The ruling, final and not subject to appeal, dismissed all claims by the contractor, saving Nigeria more than $6.2 million (around ₦9.3 billion) in alleged payments and damages.
The legal team representing Nigeria was led by Johnson & Wilner LLP, with Founding Partner Basil Udotai spearheading the arbitration alongside strategic partners and associates.
When Dr. Adebowale Adedokun assumed office as BPP Director-General, he inherited a stalled technology project and ongoing arbitration proceedings. European Dynamics UK Ltd had claimed roughly $2.4 million for milestone completions, $3 million in general damages, and an additional $800,000 in settlement claims. Although there had been discussions about an out-of-court settlement before Dr. Adedokun’s tenure, the Bureau opted to continue arbitration, insisting that payments be tied strictly to demonstrable value delivered.
The project concerned the design, development, supply, installation, and maintenance of a national electronic Government Procurement (eGP) system financed with support from the World Bank. The system aimed to improve transparency, accountability, and efficiency in federal procurement processes.
A key issue in the dispute was the User Acceptance Test (UAT), which identified major functional deficiencies, including critical omissions and errors affecting system performance. The BPP argued that unlike conventional supply contracts, software projects require performance validation, with delivery only considered complete upon satisfactory UAT confirming compliance with technical requirements and operational workflows.
The tribunal agreed with Nigeria, ruling that the vendor bore responsibility to remedy the deficiencies at no extra cost. The arbitrator also rejected the contractor’s attempt to merge multi-phase modules into a single phase, noting that the contract clearly structured payments by phase. As a result, all claims by European Dynamics UK Ltd were dismissed.
Dr. Adedokun described the outcome as a landmark victory for public sector technology contracting. He highlighted that European Dynamics had previously won cases in other African countries, making Nigeria the first to successfully challenge them. He commended the Nigerian legal team for their expertise and the Attorney General of the Federation and Minister of Justice, Prince Lateef Fagbemi, for supporting the proceedings.
AGF Fagbemi praised the DG and legal team, noting that the win signals to the international community that Nigeria is assertive in protecting its resources. He also commended President Bola Ahmed Tinubu for backing institutional strengthening within the justice sector.
The ruling reinforces the importance of rigorous UAT, clearly defined milestones, and expert-led software delivery standards in government technology contracts. The BPP has indicated plans to incorporate lessons from the arbitration into ongoing e-procurement reforms to enhance contract oversight and minimise future disputes.
