Nigeria has secured a $6.2 million arbitration victory against European Dynamics UK Ltd over a disputed electronic government procurement (e-GP) system contract. The case was resolved in favor of Nigeria by sole arbitrator Funmi Roberts on February 3 at the International Centre for Arbitration and Mediation in Abuja.
According to Kamarudeen Ogundele, special adviser to the president on communication and publicity, office of the Attorney-General of the Federation and Minister of Justice, the ruling is “favourable” and final, dismissing all claims by the contractor. This decision shields Nigeria from potential financial exposure of over $6.2 million (approximately N9.3 billion) in claimed payments and damages.
The tribunal found that European Dynamics’ claims lacked merit, upholding Nigeria’s position on key contractual obligations. Johnson & Wilner LLP, led by founding partner Basil Udotai Esq., represented Nigeria, with support from the firm’s strategic partners and associates.
The dispute arose from a contract for the design, development, customisation, supply, installation, and maintenance of a national e-GP platform intended to improve transparency and efficiency in federal procurement. The project received financing support from the World Bank.
European Dynamics had filed claims seeking approximately $2.4 million for milestone completions, $3 million in general damages, and $800,000 in settlement payments. The BPP, led by Director-General Adebowale Adedokun, inherited the stalled project and ongoing arbitration proceedings upon assuming office. Prior efforts toward an out-of-court settlement were abandoned in favor of arbitration, with the bureau emphasising that payments must correspond strictly to verified deliverables.
Central to the dispute was the user acceptance test (UAT), which the BPP said revealed major functional deficiencies, including omissions and performance-related errors in the software. The bureau argued that software customisation projects are performance-based, unlike traditional supply contracts, and delivery can only be confirmed after a successful UAT demonstrating compliance with technical and statutory requirements.
The tribunal agreed with Nigeria, ruling that the deficiencies were the contractor’s responsibility to correct at no additional cost. The arbitrator emphasized that, as the technical expert, the vendor bore the obligation to ensure compliance with contractual requirements, regardless of any earlier approved technical documentation.
Regarding the alleged merger of project phases, the tribunal stated, “Nothing in the contract suggests that such a merger is permissible, particularly given that payment is structured in phases. Consequently, the contractual framework was distorted.”
Adedokun described the arbitration outcome as a landmark achievement. “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 also thanked Fagbemi for approving the continuation of the arbitral process, noting that Nigeria would have lost billions of naira if the case had been conceded. Responding, Fagbemi commended the BPP leadership and Nigeria’s legal team for their courage and professionalism.
“Nigeria is a country blessed with both natural and human resources. This win sends a clear message to the international community, Nigeria has resonated. It is no longer business as usual,” the minister said. “By standing up to European Dynamics, we have instilled courage in other African nations to protect their own resources.”
The arbitration victory is being hailed as a major milestone for Nigeria, reinforcing the principle that federal procurement processes must meet strict performance and compliance standards, while sending a strong signal to international contractors that the country will uphold its contractual and regulatory obligations.
Erizia Rubyjeana
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