Nigeria wins international arbitration, dismisses $6.2m claim by European tech firm

Nigeria has secured a significant legal victory, successfully defending itself against a multi-million dollar claim brought by European technology firm European Dynamics UK Ltd. over a failed government digital project.

An international arbitration tribunal has dismissed all claims filed by the company against Nigeria’s Bureau of Public Procurement (BPP), which sought approximately $6.2 million (around N9.3 billion) in damages and unpaid fees. The dispute centered on a stalled contract for the national electronic Government Procurement (e-GP) system, a World Bank-backed initiative intended to enhance transparency and efficiency in federal contracting.

Kamarudeen Ogundele, Special Assistant to the President in the Office of the Attorney General of the Federation and Minister of Justice, confirmed that the tribunal has issued a final, binding ruling that cannot be appealed. The decision absolves the Nigerian government of any financial liability in the matter.

European Dynamics had claimed roughly $2.4 million for alleged completed project milestones, $3 million in general damages, and an additional $800,000 related to settlement disputes. The company’s case was built on the assertion that it was owed payment for work already performed.

Nigeria’s legal team successfully argued that software customization contracts of this nature are fundamentally performance-based. They contended that payment is only triggered upon the successful completion of a User Acceptance Test (UAT), which confirms the software meets all specified technical requirements and aligns with government workflows. The tribunal, led by sole arbitrator Funmi Roberts, agreed with Nigeria’s position, ruling that any deficiencies in the system were the contractor’s responsibility to rectify at its own cost. All claims were subsequently dismissed in their entirety.

Nigeria was represented by Johnson & Willner LLP, with founding partner Basil Udotai acting as lead counsel.

Attorney General Lateef Fagbemi commended the leadership of the BPP and the legal team for the outcome, stating the ruling sends a clear message that Nigeria “can no longer be taken for granted” in its contractual dealings. The case was inherited by the current BPP Director General, Adebowale Adedokun, upon his assumption of office.

The ruling is a major win for Nigeria, not only averting a substantial payout but also reinforcing the government’s stance on accountability and performance in high-value digital infrastructure contracts. Legal experts and development partners view the decision as a key indicator of the legal rigour now being applied to public procurement oversight in the country.