Nigeria has recorded a major legal victory after winning a 6.2 million dollar arbitration case against European Dynamics UK Ltd, an international technology contractor, over a disputed national electronic procurement project.
The ruling was delivered by Sole Arbitrator Mrs Funmi Roberts at the International Centre for Arbitration and Mediation in Abuja. The tribunal dismissed all claims brought by the company, freeing Nigeria from potential financial liability estimated at over 6.2 million dollars, approximately 9.3 billion naira.
European Dynamics UK Ltd had sought about 2.4 million dollars for alleged milestone completions, 3 million dollars in general damages and an additional 800000 dollars in settlement claims linked to the project handled by the Bureau of Public Procurement.
The dispute centered on the development and deployment of a national electronic Government Procurement system supported by the World Bank. The platform was designed to improve transparency, accountability and efficiency in federal procurement processes.
At the heart of the disagreement was the User Acceptance Test, which identified significant functional deficiencies in the system. The bureau maintained that payment for software customization projects must be tied to satisfactory performance validation rather than mere delivery. The tribunal agreed, ruling that the contractor bore responsibility for remedying the deficiencies at no additional cost.
The Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, praised the outcome, describing it as a strong signal that Nigeria will firmly defend its public resources. The Director General of the bureau, Dr Adebowale Adedokun, also welcomed the decision, noting that Nigeria successfully stood its ground against an experienced international contractor.
The legal team representing the bureau was led by Johnson and Wilner LLP, with Basil Udotai serving as lead counsel.
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