Nigeria Wins $6.2 Million Arbitration Against UK Firm

Nigeria has won an international arbitration case against European Dynamics UK Ltd, avoiding potential financial exposure of $6.2 million (approximately ₦9.3 billion).

The dispute arose from a national e-Procurement project managed by the Bureau of Public Procurement (BPP).

The contractor had claimed $2.4 million for alleged milestone completions, $3 million in general damages, and $800,000 in settlement costs.

The arbitration tribunal dismissed all claims, ruling that the contractor did not meet contractual obligations.

The decision was described as “final and not subject to appeal” in a statement by Kamarudeen Ogundele, Special Assistant to the President on Communication and Publicity (Office of the Attorney General of the Federation).

“In another victory for the administration of President Bola Ahmed Tinubu, Nigeria, through the BPP, has yet again won a complex international arbitration. European Dynamics UK Ltd had entered into a dispute with the bureau over a national e-Procurement project.

“In the ruling, which is final and not subject to appeal, the tribunal dismissed the contractor’s claims in their entirety, relieving Nigeria of potential financial exposure estimated at over $6.2 million,” the statement read.

Attorney General and Minister of Justice Lateef Fagbemi said the outcome shows the importance of compliance with contractual terms.

The Nigerian legal team representing the country was led by Johnson & Wilner LLP, with Basil Udotai, Esq., serving as lead counsel.

BPP Director-General Dr Adebowale Adedokun inherited the dispute and the associated stalled project upon assuming office.

The contract involved the design, development, supply, installation, and maintenance of a national electronic Government Procurement system supported by the World Bank.

The dispute focused on deficiencies identified during User Acceptance Testing, including technical omissions and system performance issues.

The tribunal found that the contractor was responsible for correcting these deficiencies at no additional cost and that the bureau had not approved merging multi-phase modules into a single phase.

“Nothing in the contract suggests that such a merger is permissible, particularly given that payment is structured in phases.

“Consequently, the contractual framework was distorted,” the ruling stated.

Dr Adedokun said the ruling demonstrates the ability of Nigerian legal and technical teams to handle complex contract disputes.

“This particular vendor has taken various African countries to court and won every single case. Nigeria is the first to defeat them.

“We stood our ground against one of the best legal teams in the world because we believed in the expertise of our own Nigerian legal professionals,” he said.