Nigeria Wins $6.2m Arbitration Case Against EU Tech Firm, Tribunal Dismisses All Claims
By Public Eye News | February 22, 2026
By Chief Editor
Nigeria has secured a landmark international arbitration victory after a tribunal dismissed in full a $6.2 million (about ₦9.3 billion) claim filed by European technology contractor, European Dynamics UK Ltd, against the Bureau of Public Procurement (BPP).
The ruling, described as final and binding, cleared Nigeria of all financial liabilities arising from the disputed national electronic Government Procurement (eGP) project.
Background to the Dispute
The arbitration stemmed from a contract awarded for the design, customization, supply, installation, and maintenance of a national e-procurement system aimed at strengthening transparency and accountability in federal procurement processes. The project was supported by the World Bank.
European Dynamics UK Ltd had sought approximately $2.4 million for alleged milestone completions, $3 million in general damages, and $800,000 in additional settlement claims.
However, the BPP maintained that payments were strictly tied to verified performance benchmarks, particularly the successful completion of the User Acceptance Test (UAT). The Bureau identified significant functional deficiencies during the UAT phase, arguing that software delivery is performance-based and must meet contractual and operational requirements before payment obligations crystallize.
The tribunal upheld Nigeria’s position, ruling that the identified deficiencies fell within the contractor’s responsibility and that there was no contractual basis for merging multi-phase modules into a single payment phase.
Nigeria’s Legal Strategy
Nigeria’s defense was led by Johnson & Wilner LLP, with Basil Udotai Esq. heading the arbitration proceedings alongside the firm’s partners and associates.
The Director-General of BPP, Dr. Adebowale Adedokun, who inherited the stalled project and ongoing arbitration upon assumption of office, opted against an out-of-court settlement and pursued the arbitral process to its conclusion.
‘No Longer Business as Usual’ AGF
Speaking during the formal presentation of the award, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), said the ruling signals a new era in Nigeria’s approach to international commercial disputes.
According to him, the victory sends a clear message that Nigeria will no longer tolerate contractual distortions or unjustified financial claims.
Dr. Adedokun described the outcome as historic, noting that the contractor had reportedly succeeded in similar claims against other African countries, making Nigeria’s victory a significant precedent.
Broader Implications
Legal experts say the decision reinforces the importance of rigorous User Acceptance Testing, clear milestone definitions, and strict adherence to contractual standards in public sector technology projects.
Observers believe the ruling strengthens Nigeria’s institutional credibility and underscores ongoing reforms under the administration of Bola Ahmed Tinubu aimed at safeguarding public funds and reinforcing due process in procurement.
The development is widely viewed as a boost to Nigeria’s global legal standing and a strong signal to international contractors operating within the country’s public sector space.
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