Nigeria has scored a major legal victory against European Dynamics UK Ltd, an international technology contractor, after an international arbitration tribunal dismissed the company’s $6.2 million claim over a national e-procurement project.
The ruling is final and not subject to appeal.
The dispute, handled by Nigeria’s Bureau of Public Procurement (BPP), stemmed from alleged milestone payments, general damages, and settlement claims related to the design, development, and maintenance of a national electronic Government Procurement (eGP) system funded with World Bank support.
Central to the arbitration was the User Acceptance Test (UAT), which revealed critical deficiencies in the system’s functionality.
Nigeria argued that payment must be tied to demonstrable performance.
The tribunal agreed, holding the contractor fully responsible for rectifying defects at no extra cost and rejecting all claims.
BPP Director-General Dr. Adebowale Adedokun described the outcome as a “historic signal for public sector technology contracting,” noting that Nigeria had defeated a company that had previously won similar cases in other African countries.
“We stood our ground because we trusted the expertise of our Nigerian legal professionals,” he said.
Attorney General and Minister of Justice, Prince Lateef Fagbemi, also praised the legal team, saying the victory “sends a clear message internationally: Nigeria is no longer business as usual.”
The ruling reinforces the importance of clear contractual milestones, rigorous software testing, and expert oversight in public sector technology projects, setting a precedent for future e-procurement contracts and reducing the risk of international disputes.
