The dispute, filed against Nigeria’s Bureau of Public Procurement, stemmed from disagreements over the national electronic Government Procurement (e-GP) system. The project, backed by the World Bank, was designed to improve transparency and efficiency in federal procurement.
In a statement, Kamarudeen Ogundele, special assistant to the President in the Office of the Attorney General of the Federation and Minister of Justice, said the tribunal issued a final ruling that is not appealable. The decision clears Nigeria of potential financial exposure of about $6.2 million, roughly N9.3 billion.
European Dynamics had sought about $2.4 million for alleged milestone completions, $3 million in general damages, and a further $800,000 in settlement-related claims. However, the tribunal sided fully with Nigeria’s defence.
Nigeria argued that software customisation contracts are performance-driven and only deemed delivered after a successful User Acceptance Test confirms compliance with technical specifications and statutory workflows. The tribunal agreed, ruling that the identified deficiencies were the contractor’s responsibility to correct at no extra cost.
The sole arbitrator, Funmi Roberts, consequently dismissed all claims in their entirety.
Nigeria’s legal team was led by Johnson & Wilner LLP, with founding partner Basil Udotai serving as the lead on the arbitration.
Attorney General Lateef Fagbemi praised the Bureau’s leadership and the legal team, describing the outcome as a strong signal that Nigeria “can no longer be taken for granted.”
The case was inherited by BPP Director General Adebowale Adedokun upon assuming office.
For Nigeria, the ruling not only averts a multimillion-dollar payout but also reinforces the government’s position on performance accountability in major digital infrastructure contracts, an area closely watched by investors and development partners across Africa.
By Segun Adeyemi, Business Insider Africa
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