Nigeria Wins $6.2m Arbitration Battle Against European Tech Firm
By Rachel Akper
Nigeria has secured a major legal victory after an international arbitration tribunal dismissed a $6.2 million claim brought against the country by European Dynamics UK Ltd over a disputed federal e-government procurement contract.
The arbitration ruling, which is final and not subject to appeal, cleared Nigeria of all financial liabilities in the dispute, saving the government approximately $6.2 million (about ₦9.3 billion) in potential payouts.
The dispute centered on a contract linked to Nigeria’s electronic Government Procurement (eGP) system project, a World Bank-supported initiative designed to improve transparency, efficiency, and digitalization of public procurement processes across federal agencies.
European Dynamics UK Ltd had sought compensation covering alleged milestone payments, damages, and settlement costs. The company argued that it had fulfilled contractual obligations and was therefore entitled to payment. However, Nigeria maintained that payments were conditional on successful performance verification.
During the arbitration proceedings, evidence from User Acceptance Tests (UAT) reportedly showed technical deficiencies in the software delivered by the contractor.
The tribunal agreed with Nigeria’s position that the vendor failed to meet required performance standards and was responsible for correcting the deficiencies without additional cost.
The tribunal also found that the company had improperly merged multiple project phases without obtaining official approval, a move considered a breach of contract terms. Consequently, all claims filed by the European firm were dismissed in full.
Nigeria’s legal defense team was led by Johnson & Wilner LLP, with legal partner Basil Udotai playing a key role in the proceedings.
Government officials have described the ruling as a significant victory for public finance management and contract accountability. Authorities said the judgment reinforces the government’s commitment to enforcing performance standards in public contracts while protecting public resources.
The Federal Government also indicated that lessons from the case would help strengthen oversight mechanisms in ongoing digital transformation and procurement reform programs.
The development is being viewed as a boost to Nigeria’s international legal standing in commercial and technology contract disputes.
