Nigeria floors European tech giant in N9.3b suit

Court

Nigeria has recorded a major international legal triumph following an arbitration tribunal’s dismissal of a $6.2 million claim brought against it by European technology firm European Dynamics UK Ltd., The Guardian learnt.

A special assistant to the President in the Office of the Attorney General of the Federation and Minister of Justice, Kamarudeen Ogundele, yesterday, said the dispute, instituted against the Bureau of Public Procurement (BPP), arose from a stalled national electronic Government Procurement (e-GP) project.

According to the statement, in a final decision not subject to appeal, the tribunal dismissed all claims by the contractor, relieving Nigeria of potential financial exposure estimated at over $6.2 million, approximately N9.3 billion, in alleged payments and damages.

Nigeria’s legal team was led by Johnson & Wilner LLP, with its founding partner, Basil Udotai, spearheading the arbitration alongside the firm’s strategic partners and associates.

The dispute was inherited by the Director-General of the BPP, Dr Adebowale Adedokun, upon assumption of office.

At the time, European Dynamics UK Ltd was seeking about $2.4 million for alleged milestone completions, $3 million in general damages and an additional $800,000 in settlement-related claims.

The contract in question covered the design, development, customisation, supply, installation and maintenance of a national e-procurement system, financed with support from the World Bank, and intended to strengthen transparency, accountability and efficiency in federal procurement processes.

Nigeria argued that software customisation projects are performance-validated and that delivery only crystallises upon a satisfactory UAT confirming compliance with technical specifications, statutory workflows and the intended operational environment.

The tribunal upheld Nigeria’s position, ruling that the identified deficiencies fell within the contractor’s responsibility to remedy at no additional cost. It further held that the contractor, as the technical expert, was obligated to ensure full compliance with contractual requirements, irrespective of any earlier technical documents approved by the BPP.

Consequently, the Sole Arbitrator, Mrs ‘Funmi Roberts, dismissed all claims by European Dynamics UK Ltd in their entirety.

Responding, Fagbemi commended the leadership of the BPP and the legal team, describing the victory as a clear signal that Nigeria could no longer be taken for granted.

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