Nigeria Wins $6.2 Million Arbitration Against UK Tech Firm

Nigeria Wins $6.2 Million Arbitration Against UK Tech Firm

Nigeria has scored a landmark legal victory, securing $6.2 million in an international arbitration against UK-based technology firm European Dynamics UK Ltd over a disputed national electronic government procurement (e-GP) contract. The ruling reinforces Nigeria’s commitment to performance-based government contracts and protecting public resources.

The arbitration decision, delivered on February 3, 2026, by sole arbitrator Funmi Roberts at the International Centre for Arbitration and Mediation, dismissed all claims by the UK contractor. The award is final and not subject to appeal, according to the Attorney-General of the Federation, Lateef Fagbemi, SAN.

The dispute originated from a Bureau of Public Procurement (BPP) contract to design, develop, and implement a national e-procurement platform, supported by the World Bank to enhance transparency and efficiency in federal procurement.

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European Dynamics had claimed over $6.2 million, including:

• $2.4 million for alleged milestone completions
• $3 million in general damages
• $800,000 in settlement costs

However, the tribunal ruled the claims lacked merit, citing deficiencies during User Acceptance Testing (UAT) such as functional gaps and performance errors, which the contractor was required to fix at no additional cost.

The BPP insisted payments must be strictly tied to verified deliverables, rejecting earlier efforts at an out-of-court settlement. The tribunal upheld this stance, emphasizing that software development and customization contracts are performance-based and must meet technical and statutory standards before payments are made.

Nigeria’s legal team, led by Johnson & Wilner LLP with Basil Udotai heading the arbitration, achieved what the BPP Director-General, Adebowale Adedokun, described as a historic victory. European Dynamics had previously won arbitration cases in other African countries but lost against Nigeria, signaling a shift in how government procurement disputes are handled.

Attorney-General Fagbemi stated that this ruling sends a clear message that Nigeria will no longer be taken for granted, demonstrating strengthened legal and technical capacity in managing complex international contracts. Experts suggest the outcome will influence future e-procurement reforms to ensure compliance, accountability, and efficient management of public contracts.

Nigeria Wins $6.2 Million Arbitration Against UK Tech Firm