‎Nigeria Wins $6.2m Arbitration Case Against European Tech Firm
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‎Nigeria has secured a major legal victory in an international arbitration dispute, defeating a $6.2 million claim filed by European technology contractor, European Dynamics UK Ltd, over a national e-procurement project.
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‎The arbitration tribunal, in a final ruling not subject to appeal, dismissed the contractor’s claims in their entirety, freeing Nigeria from potential financial liability estimated at over $6.2 million—about ₦9.3 billion in alleged milestone payments, damages and settlement demands.
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‎The case was handled on behalf of Nigeria by Johnson & Wilner LLP, a Nigerian business and technology law firm, led by its Founding Partner, Basil Udotai Esq., alongside strategic partners and associates.
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‎The dispute stemmed from a contract for the design, development, supply, installation and maintenance of a national electronic Government Procurement (eGP) system financed with support from the World Bank. The project was aimed at enhancing transparency, accountability and efficiency in federal public procurement processes.
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‎Genesis of the Dispute
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‎Upon assuming office, the Director-General of the Bureau of Public Procurement (BPP), Dr Adebowale Adedokun, inherited both a stalled technology project and ongoing arbitration proceedings.
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‎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.
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‎Although discussions had earlier been initiated toward an out-of-court settlement, the Bureau opted to proceed with arbitration, maintaining that payments must strictly correspond to demonstrable value delivered.
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‎At the heart of the dispute was the User Acceptance Test (UAT), which the BPP said revealed significant functional deficiencies, including critical omissions and system errors. The Bureau argued that, unlike conventional supply contracts where delivery may be deemed complete upon physical handover, software customisation projects are performance-based and validated only upon satisfactory testing.
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‎The tribunal upheld Nigeria’s position, ruling that the identified deficiencies fell within the contractor’s obligation to remedy at no additional cost. It further held that the vendor, as the technical expert, bore responsibility for ensuring compliance with contractual requirements, regardless of earlier technical approvals.
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‎The arbitrator also found no contractual basis for merging multi-phase modules into a single phase, noting that payments were structured in stages. Consequently, all claims by European Dynamics were dismissed.
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‎‘Nigeria Can No Longer Be Taken for Granted’
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‎Presenting the arbitral award to the Attorney General of the Federation and Minister of Justice, Prince Lateef Fagbemi (SAN), Dr Adedokun described the outcome as a watershed moment in public sector technology contracting.
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‎“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 competence of our Nigerian legal professionals,” he said.
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‎He thanked the Attorney General for approving the continuation of the arbitral proceedings, stressing that the decision saved the country billions of naira that can now be redirected toward national development priorities.
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‎‘A New Era for Nigeria’ – AGF
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‎In his remarks, Attorney General Fagbemi commended the BPP leadership and the legal team for their resilience and professionalism.
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‎“This win sends a clear message to the international community: Nigeria can no longer be taken for granted. It is no longer business as usual. By standing up to European Dynamics, we have demonstrated that we will protect our national resources,” he said.
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‎He also acknowledged the support of Bola Ahmed Tinubu, noting that the administration’s commitment to strengthening institutions within the justice sector was yielding tangible results.
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‎Implications for Public Procurement
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‎Observers say the ruling reinforces the importance of rigorous User Acceptance Testing, clearly defined milestones and strict adherence to contractual performance standards in government technology projects.
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‎The BPP’s legal representatives urged that lessons from the arbitration be integrated into ongoing e-procurement reforms to enhance oversight, ensure value for money and minimise future disputes.
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‎The case is being viewed as a significant precedent in Nigeria’s effort to strengthen institutional accountability and assert its position in complex international commercial disputes.