Nigeria won a $6.2 million arbitration case against European Dynamics UK Ltd, an international technology contractor, after the dispute was referred to the Bureau of Public Procurement.

This was announced in a statement by Kamarudeen Ogundele, spokesman for AGF Lateef Fagbemi.

The ministry said that European Dynamics UK Ltd, an international technology contractor, had entered into a dispute with the BPP over a national e-procurement project.

It noted that the ruling, which is final and not subject to appeal, was dismissed by Funmi Roberts, the sole arbitrator, when the tribunal sat at the International Centre for Arbitration and Mediation, Abuja.

“The tribunal dismissed the contractor’s claims in their entirety, relieving Nigeria of potential financial exposure estimated at over $6.2 million (approximately ₦9.3 billion) in claimed payments and damages.

“The European Dynamics UK Ltd had claimed approximately $2.4 million for alleged milestone completions, $3 million in general damages, and an additional $800,000 in settlement claims,’’ said the statement.

It added that the BPP director-general, Adebowale Adedokun, inherited a stalled technology project and ongoing arbitration proceedings upon resuming office. Prior to Mr Adedokun’s appointment, there had been discussions of an out-of-court settlement, but the bureau elected to continue with the arbitral process, maintaining that payments must be tied strictly to demonstrable value delivered.

The underlying contract concerned the design, development, customisation, supply, installation and maintenance of a national electronic Government Procurement system financed with support from the World Bank.

The project aimed to strengthen transparency, accountability and efficiency across federal public procurement processes.

Central to the dispute was the User Acceptance Test. The UAT conducted by the BPP identified significant functional deficiencies, including critical omissions and errors that affect system performance.

The BPP argued that, unlike conventional supply contracts, where delivery may occur upon physical handover, software customisation projects are performance-validated.

That delivery crystallises only upon satisfactory UAT, confirming that the system operates in accordance with the technical requirements, statutory workflows, and operational environment for which it was commissioned.

The tribunal accepted Nigeria’s position that these deficiencies fell within the vendor’s responsibility to remedy at no additional cost. It further held that the contractor, as the technical expert, was obligated to ensure that the delivered system complied with contractual requirements, regardless of any earlier technical documents approved by the BPP.

The tribunal also found no evidence that the bureau consented to the merger of multi-phase modules into a single phase, and nothing in the contract suggests that such a merger is permissible, particularly given that payment is structured in phases.

Consequently, the tribunal dismissed all claims by European Dynamics UK Ltd in their entirety and ruled that the contractual framework was distorted.

According to the statement, Mr Adedokun, during a formal presentation of the award to the minister of justice, described the outcome as an important signal for public-sector technology contracting.

The AGF commended Mr Adedokun’s courage and the brilliance of the legal team.

“This win sends a clear message to the international community: Nigeria has resonated. It is no longer business as usual. By standing up to European Dynamics, we have instilled courage in other African nations to protect their own resources,” he said.

(NAN)