Nigeria Wins $6.2m Arbitration Award in E-Procurement Dispute with UK Tech Firm

Nigeria has secured a $6.2 million arbitration award in a dispute with European Dynamics UK Ltd over a national electronic procurement contract.

The ruling was delivered on February 3 by Funmi Roberts, who sat as sole arbitrator at the International Centre for Arbitration and Mediation. The decision, which is final, dismissed all claims brought against the Bureau of Public Procurement (BPP) and cleared Nigeria of liabilities estimated at more than $6.2 million.

In a statement issued on Sunday, Kamarudeen Ogundele, special adviser on communication and publicity in the office of the attorney-general of the federation, said the tribunal found no merit in the contractor’s claims and upheld Nigeria’s interpretation of the contract.

Dispute over e-procurement platform

The case arose from a contract for the design, development, customisation, installation and maintenance of a national electronic government procurement (e-GP) platform aimed at improving transparency in federal purchasing. The project was supported by the World Bank.

European Dynamics UK Ltd sought about $2.4 million for alleged milestone completions, $3 million in general damages and $800,000 in settlement-related claims.

According to the statement, the dispute centred on the user acceptance test (UAT), which the BPP said exposed significant functional gaps and performance issues in the software. The bureau maintained that payments under the contract were tied to verified deliverables and that software projects required successful testing before acceptance.

The tribunal agreed, ruling that the identified deficiencies were the contractor’s responsibility to correct at no additional cost. It held that the vendor, as the technical expert, was obliged to ensure the system met contractual and statutory requirements.

On the issue of merging project phases, the arbitrator found no contractual basis for altering the phased payment structure, noting that such a move would undermine the framework of the agreement.

Legal representation and reaction

Nigeria’s legal team was led by Johnson & Wilner LLP, with Basil Udotai heading the arbitration alongside the firm’s partners and associates.

Adebowale Adedokun, director-general of the BPP, said the bureau chose to continue with arbitration rather than pursue an out-of-court settlement, insisting that public funds could only be disbursed for completed and verified work.

He described the outcome as a landmark result, noting that the company had previously succeeded in similar cases in other African jurisdictions.

Attorney-General of the Federation Lateef Fagbemi commended the BPP and the legal team for pursuing the case to conclusion, saying the decision reinforces Nigeria’s position in enforcing contractual standards in public procurement.