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Nigeria wins $6.2m arbitration case against European tech giant

Naija News • Feb 23
Nigeria wins $6.2m arbitration case against European tech giant
**Nigeria Scores Big in $6.2m Arbitration Victory Against European Tech Firm** In a massive win for Nigeria, the country has emerged victorious in a $6.2 million arbitration case against European Dynamics UK Ltd, a leading international technology contractor. The dispute, which had been ongoing for some time, was over a national e-Procurement project aimed at strengthening transparency, accountability, and efficiency in federal public procurement processes. The project, which was financed by the World Bank, involved the design, development, customisation, supply, installation, and maintenance of an electronic Government Procurement (eGP) system. However, the contractor had claimed over $6.2 million for alleged milestone completions, general damages, and additional settlement claims. In a ruling that has been described as final and not subject to appeal, the sole arbitrator, Funmi Roberts, dismissed the contractor's claims in their entirety. This means that Nigeria is no longer exposed to potential financial losses estimated at over ₦9.3 billion. The dispute centred around the User Acceptance Test (UAT), which identified significant functional deficiencies in the system. The Bureau of Public Procurement (BPP) argued that, unlike conventional supply contracts, software customisation projects are performance-validated. In other words, delivery only crystallises upon satisfactory UAT, confirming that the system operates in accordance with technical requirements and statutory workflows. The tribunal accepted Nigeria's position that these deficiencies fell within the vendor's responsibility to remedy at no additional cost. It also held that the contractor, as the technical expert, bore the obligation to ensure that the delivered system complied with contractual requirements. This arbitration victory is a significant milestone for Nigeria, and it highlights the importance of the country's commitment to transparency and accountability in public procurement processes. The project, which was aimed at strengthening these processes, has now been vindicated, and Nigeria can move forward with its plans to implement a more efficient and transparent e-Procurement system. The Director-General of the BPP, Adebowale Adedokun, played a crucial role in ensuring that Nigeria's interests were protected throughout the arbitration process. His decision to elect to continue with the arbitral process, despite initial discussions around an out-of-court settlement, has now paid off, and Nigeria can be proud of its victory.
Source: Original Article. AI-enhanced version.