Nigeria’s $6.2m Arbitration Victory Earns ADSC Praise

by Oluwapelumi Bolu

Abuja: The President of the Africa Development Studies Centre (ADSC), Mr Victor Oluwafemi, has congratulated the Federal Government on its $6.2 million arbitration victory over European Dynamics UK Ltd.

In a statement on Monday, Oluwafemi praised the Director-General of the Bureau of Public Procurement, Dr Adebowale Adedokun, and the Attorney-General, Prince Lateef Fagbemi (SAN).

He said their efforts saved Nigeria from a potential loss of about ₦9.3 billion.

Oluwafemi called the outcome more than a legal victory, framing it as evidence of strengthened governance.

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“At a time when international contractors assume African institutions will capitulate under technical pressure, Nigeria demonstrated maturity, institutional discipline and contractual courage,” he said.

He added that dismissing claims exceeding $6.2 million signalled “a structural shift” in the management of public-sector technology contracts, reinforcing Nigeria’s demonstrated contractual discipline.

He said the case set a new standard for Nigeria’s procurement process.

He noted that procurement in many developing economies had long been vulnerable to inflated milestone claims and weak performance validation, challenges that Nigeria’s arbitration win addressed.

“The tribunal’s affirmation of the centrality of User Acceptance Testing reinforces a fundamental principle: value must be delivered before value is paid for.

“That principle must now become doctrine. Payment must follow performance,” Oluwafemi said.

He said Nigeria would no longer accept distorted interpretations, premature claims or technical shortcuts disguised as compliance.

“Performance must be verifiable and independently validated. This is how institutions are built,” he added.

Oluwafemi commended Adedokun’s resistance to premature settlement talks, describing it as leadership rooted in fiduciary responsibility.

He also praised coordination between the BPP, the Attorney-General’s office and Nigerian legal experts.

“Domestic professional capacity can compete and prevail on the international stage,” he said.

He urged Nigeria to institutionalise reforms, such as validated digital procurement milestones and strengthened e-procurement oversight, as key steps to improve transparency and accountability.

He advocated implementing independent technical audits, modular phase governance, and structured risk allocation in technology contracts, detailing these steps as practical measures for reform.

“Through Policy as a Platform and Results as a Service, Nigeria can move from reactive dispute resolution to proactive procurement intelligence.

“The future of public procurement must be data-driven, performance-coded and legally fortified,” he said.

He described the arbitration win as the start of transformative procurement reform.

“Let every contractor understand that Nigeria welcomes partnership but insists on performance.

“Today, Nigeria did not simply win a case. Nigeria strengthened its institutions, protected public resources and restored confidence in public accountability,” he said.

Oluwafemi said the centre was ready to support the BPP and other institutions in embedding the lessons into sustainable reforms.

He emphasised that this case marks the beginning of a new era in Nigerian procurement reforms.

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