The Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), has applauded Nigeria’s recent victory in a high-stakes contractual dispute with European Dynamics UK Limited.
The dispute arose from a contract awarded by the Bureau of Public Procurement (BPP) for the design, development, installation and maintenance of a national electronic Government Procurement (eGP) system, supported by the World Bank. The project was aimed at improving transparency, accountability and efficiency in federal procurement processes.
According to a statement by the AGF’s media aide, Kamarudeen Ogundele, tensions emerged after a User Acceptance Test (UAT) conducted by the BPP identified significant functional deficiencies in the software, including critical omissions and performance-related errors.
European Dynamics subsequently initiated arbitration proceedings, claiming approximately $2.4 million for alleged milestone completions, $3 million in general damages and an additional $800,000 in settlement claims totalling about $6.2 million.
However, the arbitral tribunal ruled entirely in Nigeria’s favour.
The Sole Arbitrator, Mrs. Funmi Roberts, dismissed all claims filed by the UK-based contractor.
The tribunal upheld Nigeria’s position that the identified deficiencies were the vendor’s responsibility to fix at no extra cost.
It further ruled that in software customisation contracts, delivery is only deemed complete upon satisfactory User Acceptance Testing not merely physical handover and that the contractor bore full responsibility for ensuring compliance with contractual and technical requirements.
The tribunal also found no evidence that the BPP approved the merger of multi-phase modules into a single phase, noting that payments were structured in phases and that such a merger distorted the contractual framework.
Ogundele disclosed that upon assuming office, BPP Director-General Dr. Adebowale Adedokun inherited both a stalled project and the ongoing arbitration.
Despite prior discussions about a possible out-of-court settlement, the Bureau chose to proceed with arbitration, insisting that payments must reflect verifiable value delivered.
Fagbemi commended Adedokun for his resolve in pursuing the arbitral process to conclusion, rather than opting for settlement.
Nigeria is a country blessed with both natural and human resources. This win sends a clear message to the international community: Nigeria has resonated. It is no longer business as usual,” Fagbemi was quoted as saying.
He added that the victory demonstrates Nigeria’s determination to protect public resources and uphold contractual standards, describing it as a morale boost for other African nations facing similar disputes.
Adedokun, during a formal presentation of the arbitral award to the AGF, described the outcome as historic, noting that Nigeria became the first African country to defeat the contractor in arbitration.
“This particular vendor has taken various African countries to court and won every single case. Nigeria is the first to defeat them,” he said.
He also praised the Nigerian legal team for successfully standing up to what he described as one of the best legal teams in the world, stressing that billions of naira have now been preserved for national development.
The AGF further acknowledged presidential support for institutional strengthening within the justice sector, emphasising the administration’s commitment to building resilient public institutions.
According to Ogundele, the ruling underscores the importance of rigorous User Acceptance Testing, clearly defined milestones and strict performance validation in public sector technology contracts, as Nigeria continues reforms in its e-procurement framework.