Nigeria Defeats European Tech Firm In $6.2m Arbitration, Signals New Era Of Accountability

Nigeria has recorded a major legal and institutional victory after successfully defeating European Dynamics UK Ltd in a complex international arbitration involving a national e-procurement project valued at over $6.2 million.

The arbitration tribunal, in a final award not subject to appeal, dismissed all claims brought against Nigeria, effectively shielding the country from potential financial exposure estimated at $6.2 million (about ?9.3 billion) in alleged payments and damages.

The victory marks another milestone under the administration of President Bola Ahmed Tinubu, reinforcing Nigeria’s commitment to accountability, due process, and protection of public funds.

Dispute Over National e-Procurement System

The dispute arose between the Bureau of Public Procurement (BPP) and the UK-based technology contractor over the design, development, supply, installation, and maintenance of a national electronic Government Procurement (eGP) system, financed with support from the World Bank to strengthen transparency and efficiency in federal procurement processes.

European Dynamics had claimed approximately $2.4 million for alleged milestone completions, $3 million in general damages, and an additional $800,000 in settlement claims.

Upon assuming office, the Director-General of BPP, Dr. Adebowale Adedokun, inherited both the stalled project and the ongoing arbitration. Rather than pursue an out-of-court settlement, the Bureau opted to defend Nigeria’s position, insisting that payments must strictly correspond to verifiable value delivered.

Tribunal Upholds Nigeria’s Position

Central to the dispute was the User Acceptance Test (UAT), which revealed significant functional deficiencies in the system, including critical omissions and performance errors.

Nigeria argued that software customisation contracts are performance-based and that delivery can only be deemed complete after successful validation through UAT, confirming compliance with technical requirements and statutory workflows.

The tribunal agreed, holding that the identified deficiencies were the vendor’s responsibility to remedy at no additional cost. It further ruled that the contractor, as the technical expert, bore ultimate responsibility for ensuring the system complied with contractual standards, regardless of earlier document approvals.

Additionally, the tribunal rejected claims that multi-phase modules could be merged into a single phase, noting that the contract structure did not permit such an arrangement—especially where payment was tied to phased milestones.

All claims were dismissed in their entirety.

Dr. Adedokun described the ruling as historic, noting that the contractor had previously taken several African countries to arbitration and secured victories in each instance.

“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 because we believed in the expertise of Nigerian professionals,” he said.

He thanked the Attorney General of the Federation and Minister of Justice, Prince Lateef Fagbemi, for supporting the decision to proceed with arbitration rather than settle.

Responding, the AGF described the outcome as a strong signal to the international community.

“Nigeria is blessed with natural and human resources. It is no longer business as usual. By standing up to European Dynamics, we have sent a clear message that Nigeria will protect its resources,” he stated.

The development was disclosed in a statement issued by Kamarudeen Ogundele, Special Adviser to the President on Communication and Publicity in the Office of the Attorney General of the Federation and Minister of Justice, who noted that the ruling reflects the administration’s resolve to strengthen institutions and defend national interests through lawful and strategic means.

Nigeria’s legal team was led by Johnson & Wilner LLP, with Basil Udotai Esq., Founding Partner, spearheading the arbitration proceedings alongside strategic partners and associates.

Observers say the ruling reinforces the importance of rigorous User Acceptance Testing, clear milestone definitions, and expert-driven oversight in public sector technology contracts.

Beyond the financial savings, the decision represents something deeper: a demonstration that Nigeria’s institutions can defend national interests effectively on the global stage.

As reforms in public procurement and digital governance continue, this victory stands as a defining moment—proof that Nigeria is prepared to insist on performance, transparency, and value for money in all international engagements.