Nigeria has won an international arbitration dispute involving European Dynamics UK Ltd, avoiding a potential financial liability of $6.2 million (about ₦9.3 billion) linked to a national e-procurement project.
The dispute between the Bureau of Public Procurement (BPP) and the UK-based contractor arose from the design and deployment of a national electronic Government Procurement (eGP) platform aimed at improving transparency and efficiency in federal procurement.
In a statement issued on Sunday in Abuja by Kamarudeen Ogundele, Special Assistant to President (Communication and Publicity) in the Office of the Attorney General of the Federation and Minister of Justice, Government confirmed that the arbitral tribunal dismissed the contractor’s claims in full.
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In a final award not subject to appeal, the sole arbitrator, Funmi Roberts, rejected all claims filed by the company.
European Dynamics had sought about $2.4 million for alleged milestone completions, $3 million in general damages and $800,000 in additional settlement-related claims.
The contract covered the design, customisation, installation and maintenance of the eGP system, financed with support from the World Bank.
The dispute centred on whether contractual milestones had been met under the software development agreement.
According to the BPP, User Acceptance Testing (UAT) conducted on the platform identified functional deficiencies, including omissions and errors that affected system performance.
The Bureau argued that software customisation contracts are performance-based and that delivery is complete only after successful UAT confirms compliance with contractual and technical requirements.
The tribunal upheld this position, ruling that the identified deficiencies were the contractor’s responsibility to remedy at no additional cost. It also held that the vendor bore the obligation to ensure full compliance with the contract, regardless of previously approved technical documents.
The arbitrator further found no evidence that the BPP approved the merger of multi-phase modules into a single phase, noting that the contract structured payments in stages.
Nigeria’s legal team was led by Johnson & Wilner LLP, with Basil Udotai, the firm’s founding partner, leading the proceedings.
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Adebowale Adedokun, Director-General of the BPP,said the ruling affirms the principle that public payments should be tied to verified performance.
Lateef Fagbemi (SAN),Attorney-General of the Federation and Minister of Justice, said the outcome reflects efforts to strengthen contract enforcement within the public sector.
The decision highlights the importance of clearly defined milestones, rigorous testing and performance-based payment structures in government technology contracts, particularly as Nigeria expands its digital procurement systems.
