Nigeria has secured a major international arbitration victory against European technology contractor European Dynamics UK Ltd, avoiding potential payments and damages estimated at more than $6.2 million (about ₦9.3 billion) tied to a disputed national e-procurement project.
The case, Securitynewsalert.com gathered, was handled by the Bureau of Public Procurement and ended with the tribunal dismissing all claims filed by the contractor, according to a statement released by presidential spokesperson Bayo Onanuga.
Officials say the ruling underscores a broader anti-corruption push within the administration of Bola Ahmed Tinubu, particularly around public procurement and technology contracts funded with international support.
The dispute stemmed from a national electronic Government Procurement (eGP) system project intended to improve transparency and accountability in federal procurement processes.
When the current Director-General of the bureau, Adebowale Adedokun, assumed office, he inherited both a stalled project and ongoing arbitration proceedings initiated by the contractor. The company had claimed about $2.4 million for alleged milestone completions, $3 million in general damages, and an additional $800,000 in settlement claims.
Rather than pursue the previously discussed out-of-court settlement, the bureau opted to proceed with arbitration, arguing that payments should be made only for verifiable work delivered.
Central to the dispute was the User Acceptance Test (UAT), which the bureau said revealed major functional deficiencies and errors in the system. According to the ruling, the tribunal agreed with Nigeria’s argument that the contractor was responsible for correcting those issues at no additional cost.
The tribunal also ruled that the contractor could not merge multiple project phases into a single phase, noting that the contract structured payments in stages. It concluded that the claims lacked merit and dismissed them entirely.
Presenting the arbitration award to the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, Adedokun said the decision sends a strong message about accountability in government contracts.
“This particular vendor has taken various African countries to court and won every single case. Nigeria is the first to defeat them. We stood our ground because we believed in the expertise of our Nigerian legal professionals,” Adedokun said.
He added that pursuing the case instead of settling prevented the loss of billions of naira that could now be directed toward national development.
Fagbemi described the ruling as a sign that Nigeria is tightening oversight and protecting public resources.
“Nigeria is a country blessed with both natural and human resources. This win sends a clear message to the international community: it is no longer business as usual,” he said.
Officials say the case highlights long-standing concerns about procurement disputes and accountability in major public technology projects, an area often criticised for waste and contract irregularities.
The ruling is expected to influence future government technology contracts by emphasising stricter milestone verification, clearer contractual terms and rigorous system testing before payments are approved. #https://securitynewsalert.com/
