Nigeria has secured a major legal victory after an international arbitral tribunal dismissed in full the claims brought against the Bureau of Public Procurement by European Dynamics UK Ltd over a national electronic procurement project.
In a statement signed by Kamarudeen Ogundele, S A to the President (Communication and Publicity), Office of the Attorney General of the Federation and Minister of Justice, the ruling, described as final and not subject to appeal, shields the country from potential financial liability estimated at over $6.2 million (about ₦9.3 billion) in disputed payments and damages.
The development has been framed as a win for the administration of Bola Ahmed Tinubu, reinforcing Nigeria’s stance on accountability in public sector technology contracts.
Nigeria’s defence was led by Johnson & Wilner LLP, with Basil Udotai, the firm’s founding partner, heading the arbitration team alongside strategic partners and associates.
The dispute arose from a contract for the design, customisation, installation 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.
According to the BPP, the conflict centred on the User Acceptance Test (UAT), which identified significant functional deficiencies in the software system. Nigeria maintained that delivery in software contracts is performance-validated and must meet technical and operational requirements before payment becomes due.
The tribunal upheld this position, ruling that the vendor bore responsibility for remedying identified deficiencies at no additional cost. It also rejected claims that project modules could be merged into a single phase, noting that such a move would distort the contractual payment framework.
Director-General of the BPP, Adebowale Adedokun, said the outcome signals Nigeria’s resolve in managing public sector technology contracts.
He stated that the contractor had previously succeeded in similar disputes across Africa, adding that Nigeria’s decision to pursue arbitration rather than settlement protected public funds.
Adedokun presented the arbitral award to the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), who commended the legal team and described the outcome as evidence of strengthening institutions within the justice sector.
Fagbemi said the ruling sends a message that Nigeria is prepared to defend its resources and uphold contractual standards in international engagements.
Observers say the decision underscores the importance of strict User Acceptance Testing, clearly defined project milestones and performance-based delivery standards in government technology contracts.
Officials indicated that lessons from the case will inform ongoing e-procurement reforms aimed at strengthening oversight and reducing the risk of future disputes in public sector digital infrastructure projects.
