Nigeria has secured a major legal win after an arbitration tribunal dismissed claims by European Dynamics UK Ltd, saving the government an estimated $6.2 million in potential liabilities. The ruling, delivered at the International Centre for Arbitration and Mediation, Abuja, arose from a dispute over a national e-procurement project under the Bureau of Public Procurement.

The contractor had sought payments for alleged milestone completions and damages, but the sole arbitrator, Funmi Roberts, dismissed the claims, citing performance deficiencies identified during User Acceptance Testing (UAT). The tribunal upheld Nigeria’s position that payment was contingent on demonstrable system functionality and compliance with contractual requirements.

According to the Attorney-General of the Federation, Lateef Fagbemi, the outcome protects public finances and reinforces strict performance standards in government technology contracts. The e-procurement project, financed with support from the World Bank, aimed to enhance transparency and efficiency in procurement but encountered technical shortcomings.

Nigeria’s legal team, led by Johnson & Wilner LLP with arbitration expert Basil Udotai, argued that the contractor was responsible for remedying deficiencies at no additional cost. The tribunal agreed, finding no contractual basis for the vendor’s claims.

The government framed the decision as a precedent for stronger oversight in public technology contracting, emphasizing that payments must reflect delivered value. Officials noted that lessons from the case would inform ongoing procurement reforms to reduce future disputes and improve project governance.

The ruling, described as final and non-appealable, underscores Nigeria’s growing commitment to defending public resources in complex international commercial disputes. It also sends a message to global contractors that performance validation remains central to government procurement agreements.