Nigeria wins $6.2m arbitration cases against British engineering firm European Dynamics

NIGERIA'S federal government has just won a landmark ruling securing a major victory against British international technology contractor European Dynamics UK in a $6.2m arbitration case.

Earlier this month, the  case was resolved in favour of Nigeria by sole arbitrator Funmi Roberts at the International Centre for Arbitration and Mediation in Abuja. According to Kamarudeen Ogundele, the special adviser to the attorney-general of the federation and justice minister, the ruling was favourable and final, as it dismissed all claims by the contractor.

This victory shields Nigeria from potential financial exposure of over $6.2m in claimed payments and damages. In its ruling, the one-man tribunal found that European Dynamics’ claims lacked merit and it upheld Nigeria’s position on key contractual obligations.

“In the ruling, which is final and not subject to appeal, the tribunal dismissed the contractor’s claims in their entirety, relieving Nigeria of potential financial exposure estimated at over $6.2m in claimed payments and damages,” the judgement read.

Johnson & Wilner, led by founding partner Basil Udotai, represented Nigeria, with support from the firm’s strategic partners and associates. This dispute arose from a contract for the design, development, customisation, supply, installation and maintenance of a national e-GP platform intended to improve transparency and efficiency in federal procurement.

Seen as ground-breaking in many ramifications, the project received financing support from the World Bank. However, a dispute arose with the Nigerian government and European Dynamics having a falling apart, leading to the legal dispute.

In a similar recent dispute, in October last year, the UK Supreme Court ordered Process and Industrial Developments (P&ID), an offshore company, to pay £44m in legal costs to Nigeria. This was as a result of the fact that in 2023, Nigeria had won an $11bn PID case in the courts in London, UK.