Nigeria has secured a major international arbitration victory after a tribunal dismissed in its entirety a $6.2 million claim filed by European technology contractor, European Dynamics UK Ltd, against the Bureau of Public Procurement (BPP).
The ruling, which is final and not subject to appeal, relieves Nigeria of potential financial exposure estimated at over $6.2 million (approximately ₦9.3 billion) in disputed payments and damages arising from a national electronic Government Procurement (eGP) project.
The development was disclosed in a statement issued on Sunday, 22nd February,2026 by Kamarudeen Ogundele, Special Assistant to the President (Communication and Publicity), Office of the Attorney General of the Federation and Minister of Justice.
The arbitration stemmed from a contract for the design, development, customisation, supply, installation, and maintenance of a national e-Procurement system, financed with support from the World Bank. The initiative was aimed at enhancing transparency, accountability, and efficiency in federal public procurement processes.
European Dynamics UK Ltd had claimed approximately $2.4 million for alleged milestone completions, $3 million in general damages, and an additional $800,000 in settlement claims.
However, the BPP maintained that payments under the contract were strictly tied to demonstrable value delivery, particularly successful completion of the User Acceptance Test (UAT).
Central to the dispute was the outcome of the UAT conducted by the bureau, which reportedly identified significant functional deficiencies, including critical omissions and system errors affecting performance.
Nigeria argued that in software customisation contracts, delivery is performance-validated and only crystallises upon satisfactory UAT confirming compliance with technical specifications and statutory workflows.
The tribunal upheld Nigeria’s position, ruling that the deficiencies identified fell within the contractor’s responsibility to remedy at no additional cost. It further held that the contractor, as technical expert, bore the obligation to ensure compliance with contractual requirements, regardless of prior technical document approvals by the BPP.
The tribunal also found no evidence that the bureau had consented to the merger of multi-phase modules into a single phase, noting that such a move would distort the contract’s phased payment structure.
The Director-General of the BPP, Dr. Adebowale Adedokun, described the outcome as a landmark moment for public sector technology contracting in Nigeria.
According to him, the contractor had previously secured victories in similar disputes across several African countries, making Nigeria’s success particularly significant.
“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 while formally presenting the award to the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, SAN..
Adedokun added that earlier discussions had considered an out-of-court settlement before his appointment, but the bureau opted to proceed with arbitration to safeguard public funds.
Nigeria’s legal team was led by Johnson & Wilner LLP, a Nigerian business and technology law firm, with Basil Udotai, Esq., serving as lead counsel in the proceedings.
Responding to the development, Fagbemi commended the BPP leadership and the legal team for what he described as courage and professional excellence.
“This win sends a clear message to the international community: Nigeria has resonated. It is no longer business as usual,” the Attorney General said.
He added that by resisting what he described as unfounded claims, Nigeria had set a precedent for other African nations to defend their public resources in complex international commercial disputes.
The ruling is expected to influence future public sector technology contracts, particularly in relation to rigorous User Acceptance Testing, clearly defined milestones, and strict performance validation standards.
Legal representatives for the BPP urged that lessons from the arbitration be integrated into ongoing e-procurement reforms to strengthen contract performance oversight and minimise future disputes.
The victory marks another high-profile legal success for the administration of President Bola Ahmed Tinubu in defending Nigeria’s financial and contractual interests on the international stage.
