Nigeria has secured a major legal victory in international arbitration, successfully defending itself against claims by a European technology contractor over a national e-Procurement project.
The dispute involved European Dynamics UK Ltd, which had sought payments and damages exceeding $6.2 million (approximately ₦9.3 billion) from the Bureau of Public Procurement (BPP). The arbitration tribunal, in a final and non-appealable ruling, dismissed all of the contractor’s claims.
Nigeria’s legal team, led by Basil Udotai, Founding Partner at Johnson & Wilner LLP, argued that the contractor failed to meet the required standards during the User Acceptance Test (UAT) conducted by the BPP. The test revealed significant functional deficiencies, including critical omissions and errors that affected the system’s performance.
The BPP emphasised that, unlike traditional supply contracts, software projects are considered delivered only when performance tests confirm they meet technical, statutory, and operational requirements. The tribunal agreed, ruling that the contractor was responsible for correcting the deficiencies at no additional cost.
The tribunal also upheld that, as the technical expert, the contractor had a duty to ensure the system complied with contractual standards, regardless of previously approved technical documents.
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