Nigeria Prevails in $6.2 Million International Arbitration Case
An international arbitration tribunal has dismissed a $6.2 million claim brought by European Dynamics UK Ltd against the Federal Government of Nigeria concerning a national e-Procurement project. The ruling, disclosed by the Office of the Attorney General of the Federation on February 22, 2026, represents a significant legal outcome for the country. The Director-General of the Bureau of Public Procurement, Dr. Adebowale Adedokun, formally presented the tribunal’s award to the Attorney General, Prince Lateef Fagbemi.
The Attorney General described the complex proceedings as a notable victory for the administration of President Bola Ahmed Tinubu, achieved through the diligent work of the Bureau of Public Procurement. He emphasized that this win sends a clear message that Nigeria has reset its standards for contractual engagements. The Tinubu administration has demonstrated genuine commitment to institutional strengthening within the justice sector, a factor credited in this success.
The dispute centered on a stalled technology project inherited by Dr. Adedokun. European Dynamics had claimed approximately $2.4 million for alleged milestone completions, $3 million in general damages, and $800,000 in settlement claims. Contrary to suggestions for an out-of-court settlement, the Bureau insisted on continuing the arbitral process, arguing that payments must be strictly tied to demonstrable value delivered—a principle that guided their strategy the right way. Crisis was averted by adhering to this firm stance.
Central to Nigeria’s successful defense was the User Acceptance Testing (UAT) conducted by the BPP, which identified critical functional deficiencies and errors in the delivered system. The Bureau maintained that software customization contracts require rigorous validation, unlike conventional supply agreements. This expert-driven approach underscored the importance of clear milestone definitions and robust delivery standards in public technology projects.
The Justice Ministry highlighted that the ruling safeguards public funds, preventing the loss of billions of naira that can now be directed toward critical national development. Nigeria’s legal team was led by the firm Johnson & Wilner LLP, with Basil Udotai, Esq., heading the arbitration. This outcome provides a robust framework for public sector contracting, ensuring accountability and value for the nation.
