Nigeria has secured a significant international legal victory after an arbitration tribunal dismissed a 6.2 million dollar claim brought by European Dynamics UK Ltd in relation to a stalled federal electronic procurement project.
The dispute was filed against Nigeria’s Bureau of Public Procurement and centred on disagreements over the national electronic Government Procurement system, commonly referred to as e GP. The digital platform, supported by the World Bank, was designed to modernise public procurement processes, enhance transparency and improve efficiency across federal ministries and agencies.
European Dynamics sought approximately 2.4 million dollars for alleged completion of project milestones, 3 million dollars in general damages and an additional 800,000 dollars linked to settlement related claims. In total, the company argued that it was entitled to 6.2 million dollars over the disputed implementation of the system.
However, the arbitration tribunal dismissed all claims in their entirety. The sole arbitrator, Funmi Roberts, ruled in favour of Nigeria, concluding that the contractor had not satisfied performance requirements under the agreement.
According to officials, Nigeria’s defence was anchored on the principle that software customisation and public sector digital transformation contracts are performance driven. Under the terms of the agreement, deliverables were considered complete only after a successful User Acceptance Test confirmed compliance with technical specifications and statutory procurement workflows. The tribunal agreed that identified deficiencies in the system remained the responsibility of the contractor and were to be corrected at no additional cost to the Nigerian government.
In a statement, Kamarudeen Ogundele, special assistant to the president in the Office of the Attorney General of the Federation and Minister of Justice, said the ruling was final and not subject to appeal. He noted that the outcome shields Nigeria from potential financial exposure equivalent to roughly 9.3 billion naira.
Nigeria’s legal team in the arbitration was led by Johnson & Wilner LLP, with founding partner Basil Udotai serving as lead counsel. The Attorney General and Minister of Justice, Lateef Fagbemi, praised both the Bureau of Public Procurement and the legal team for what he described as a decisive defence of the country’s contractual position. He said the verdict sends a clear message that Nigeria will insist on strict compliance with agreed performance benchmarks in major public projects.
The case was inherited by the Bureau’s Director General Adebowale Adedokun upon assuming office. Observers note that the dispute unfolded at a time when Nigeria has been intensifying efforts to digitise public finance management and strengthen oversight of government contracts.
Analysts say the ruling reinforces investor confidence in Nigeria’s procurement oversight framework by clarifying that milestone payments are contingent on verified technical performance. In the context of development financed projects, especially those backed by multilateral lenders such as the World Bank, adherence to performance standards and transparent contract enforcement are closely monitored by both domestic and international stakeholders.
The decision also underscores the growing complexity of public sector digital transformation initiatives across Africa. As governments modernise procurement and financial management systems, disputes over scope, technical compliance and milestone certification have become more frequent. Arbitration outcomes such as this one provide guidance on how performance based technology contracts are interpreted in international legal forums.
For Nigeria, the tribunal’s dismissal of the 6.2 million dollar claim not only averts a substantial payout but also strengthens the government’s negotiating position in future digital infrastructure projects. It signals that contractors operating in the country’s public sector environment will be held to rigorous technical and compliance standards before payments are validated.
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