AGF Fagbemi hails Nigeria’s $6.2m arbitration win
Naija News • Feb 22
**Nigeria Scoops $6.2m from International Contractor in Landmark Arbitration Win**
In a significant victory for the country, Nigeria has emerged triumphant in an arbitration dispute with a foreign firm, European Dynamics UK Limited. The contractor, which had a contract with the Bureau of Public Procurement (BPP) to develop a national electronic Government Procurement (eGP) system with World Bank support, has been ordered to pay $6.2 million.
The eGP system, designed to promote transparency and efficiency in federal public procurement processes, had been marred by a dispute over the User Acceptance Test (UAT). The BPP, in a thorough review, identified significant functional deficiencies in the system, including critical omissions and errors that affected its performance.
The contractor had claimed millions of dollars in damages and settlement claims, but the BPP's Director-General, Dr. Adebowale Adedokun, made the bold decision to continue with the arbitral process. A team of Nigerian experts with expertise in technology contracting was engaged to review the technical and contractual issues in dispute.
The tribunal ultimately accepted the BPP's position that the deficiencies in the system fell within the vendor's responsibility to remedy at no additional cost. This landmark victory is a testament to Nigeria's commitment to upholding its rights and protecting its interests in international contracts.
In a statement, the Attorney General of the Federation, Lateef Fagbemi (SAN), expressed delight at the outcome, highlighting the importance of diligence and expertise in contract awards. "This victory is a demonstration of our country's ability to negotiate and execute contracts that benefit our citizens," he said.
The outcome of this arbitration has significant implications for Nigeria's public procurement processes, demonstrating the importance of rigorous contract review and enforcement. It also underscores the need for our country to develop its capacity in technology contracting and international arbitration. With this victory, Nigeria takes a major step forward in promoting transparency, accountability, and efficiency in its public procurement processes.