Nigeria has secured a major legal victory after an international arbitration tribunal dismissed a $6.2 million claim filed by European Dynamics UK Ltd over a stalled national e-Procurement project.
Lateef Fagbemi, Attorney General of the Federation and Minister of Justice, said the ruling shields the country from significant financial exposure and reinforces accountability in public contracting.
The dispute arose from a contract between European Dynamics UK Ltd and the Bureau of Public Procurement (BPP) for the design, development, and maintenance of a national electronic Government Procurement (eGP) system, supported by the World Bank.
The project was intended to enhance transparency and efficiency in federal procurement processes.
At the centre of the disagreement was the User Acceptance Test (UAT), which the BPP said revealed major functional deficiencies, including omissions and system errors.
European Dynamics claimed $2.4 million for alleged milestone completions, $3 million in general damages, and $800,000 in settlement claims.
The sole arbitrator, Mrs. Funmi Roberts, dismissed all claims in their entirety.
The tribunal upheld Nigeria’s argument that software delivery is performance-based and only deemed complete after passing satisfactory testing. It ruled that the contractor, as the technical expert, bore responsibility for correcting deficiencies at no additional cost.
It also found no contractual basis for merging project phases in a way that would alter payment terms.
Fagbemi commended the Director-General of the BPP, Adebowale Adedokun, for pursuing arbitration instead of opting for an out-of-court settlement.
He described the outcome as a strong signal that Nigeria will defend its interests in international disputes and uphold contractual standards in public sector projects.
According to the BPP, European Dynamics had previously prevailed in similar cases involving other African countries, making Nigeria’s win a notable precedent.
Officials say the ruling strengthens confidence in Nigeria’s institutional capacity to manage complex international commercial disputes.
