The dispute stemmed from a national e-Procurement project handled by the Bureau of Public Procurement (BPP). In a final ruling described as not subject to appeal, the arbitral tribunal dismissed all claims brought by the UK-based contractor.

The Claims and the Tribunal’s Verdict

According to a statement issued by Kamarudeen Ogundele, Special Assistant to the President on Communication and Publicity in the Office of the Attorney General of the Federation, the contractor had sought:

$2.4 million for alleged milestone completions

$3 million in general damages

$800,000 in settlement claims

However, the tribunal ruled entirely in Nigeria’s favour, holding that the deficiencies identified during the project’s User Acceptance Test were the responsibility of the vendor and had to be remedied at no extra cost.

Central to the case was whether the software delivered under the contract met agreed technical and operational standards. The BPP argued that performance validation through User Acceptance Testing was a contractual requirement and that delivery could not be deemed complete without passing that stage.

The tribunal agreed, further ruling that the contractor, as the technical expert, bore full responsibility for ensuring compliance with contractual obligations — regardless of earlier approvals of technical documents.

It also rejected claims that project modules could be merged into a single phase, noting that payments were clearly structured in phases under the contract. Any such merger, the tribunal stated, distorted the contractual framework.

Government Reaction

Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, hailed the outcome, declaring that “it is no longer business as usual.”

President Bola Tinubu’s administration was also credited in the statement for supporting the continuation of the arbitral proceedings.

The legal team representing Nigeria was led by Johnson & Wilner LLP, with Basil Udotai serving as lead counsel.

Dr Adebowale Adedokun, Director-General of the BPP, described the win as particularly significant, noting that the contractor had previously succeeded in similar disputes across other African countries. According to him, Nigeria is the first to defeat the firm in arbitration.

Broader Implications

The underlying contract — supported by the World Bank — involved the design, development, installation, and maintenance of a national electronic Government Procurement system aimed at strengthening transparency and efficiency in federal procurement.

Beyond the immediate financial relief, the ruling underscores the importance of rigorous milestone definitions, strict User Acceptance Testing, and performance-based validation in public sector technology contracts.

Officials say lessons from the case will be integrated into ongoing e-procurement reforms to reduce the risk of future disputes and improve contract oversight.