The Digest:
Nigeria has secured a decisive arbitration victory against United Kingdom-based technology firm European Dynamics UK Ltd, winning $6.2 million in a dispute over a national e-procurement contract. The ruling, delivered by sole arbitrator Funmi Roberts at the International Centre for Arbitration and Mediation, Abuja, on February 3, dismissed the contractor's claims in their entirety, relieving Nigeria of potential financial exposure estimated at over $6.2 million (approximately N9.3 billion). The dispute arose from a contract for the design, development, and maintenance of a national e-GP platform financed by the World Bank. European Dynamics had claimed about $2.4 million for alleged milestone completions, $3 million in damages, and $800,000 in settlement claims. The tribunal upheld Nigeria's position that payment must be tied to verified deliverables after user acceptance tests revealed significant functional deficiencies. Attorney-General Lateef Fagbemi called the victory a message to the international community that "Nigeria can no longer be taken for granted."
Key Point:
- The ruling saves Nigeria N9.3 billion in potential claims and damages.
- It establishes precedent that software contracts require verified deliverables.
- Taxpayers gain protection, while Nigeria asserts contractual rigour.
- This signals Nigeria's ability to successfully defend international arbitration.
- The timing, with the BPP leadership change, validates the strategic legal choice.
Sources: TheCable, Attorney-General's Office
