Nigeria has recorded a major international legal win after an arbitration panel threw out a $6.2 million claim filed by European Dynamics UK Ltd. over a delayed federal digital procurement project.
A legal challenge lodged against Nigeria’s Bureau of Public Procurement (BPP) centered on disagreements over the country’s electronic Government Procurement (e-GP) platform. The reform initiative, funded by the World Bank, was introduced to boost transparency and streamline federal procurement processes.
Kamarudeen Ogundele, Special Assistant to the President in the Office of the Attorney General of the Federation and Minister of Justice, explained in a statement that the arbitral panel delivered a final and binding award with no avenue for appeal. The outcome spares Nigeria from a possible $6.2 million liability, estimated at about N9.3 billion.
European Dynamics UK Ltd. had demanded roughly $2.4 million for purported milestone achievements, $3 million as general damages, and an additional $800,000 linked to settlement claims. The tribunal, however, ruled entirely in Nigeria’s favour.
According to Nigeria’s defence, software customisation agreements are strictly performance-based and can only be considered fulfilled after passing a User Acceptance Test that confirms alignment with technical requirements and statutory procedures.
The tribunal agreed, holding that any defects identified were the contractor’s responsibility to fix at no extra cost. The sole arbitrator, Funmi Roberts, subsequently struck out all the claims.
Nigeria’s legal representation was led by Johnson & Wilner LLP, with founding partner Basil Udotai heading the arbitration. Attorney General Lateef Fagbemi praised both the Bureau’s leadership and the legal team, saying the judgment sends a strong message that Nigeria will not be undermined. The case had been inherited by BPP Director General Adebowale Adedokun when he assumed office.
Beyond averting a multimillion-dollar payout, the ruling reinforces Nigeria’s commitment to strict performance standards in major digital infrastructure projects an issue closely observed by investors and development partners across the continent.