The Federal Government says it has terminated the contract of two Payment Service Providers (PSPs) for failure in disbursing cash to poor and vulnerable residents in four states.
The “Payment Service Providers” were contracted by the Federal Government to make payments to vulnerable persons in Bayelsa, Akwa Ibom, Abia and Zamfara States.
According to a statement signed on Tuesday for the Minister of Humanitarian Affairs, Disaster Management and Social Development, Sadiya Farouq, the project was called off after a breach of the agreement by the contractors.
“The Minister of Humanitarian Affairs, Disaster Management and Social Development, Sadiya Umar Farouq, has directed the immediate termination of the contract of two Payment Service Providers (PSPs) for failure to meet the contractual agreement to commence Conditional Cash Transfer to beneficiaries in four states of the federation assigned to the two PSPs.
“The affected states are Bayelsa and Akwa Ibom in the South-South; Abia in the South East and Zamfara, in the North West.
“The immediate termination of the contract would be with the guidance of the World Bank, and a new procurement process launched using World Bank procurement guidelines to ensure that payment commences in the affected states on or before April 28, 2020,” the statement read in part.
The Minister added that the Federal Government cannot accept delays in the current payment round of N20,000 stipends to beneficiaries in poor and vulnerable households under any excuses in the four states or any other states of the federation.
“The failure of any payment service provider to meet their contractual agreement is unacceptable.
“The Federal Government through the Ministry cannot allow contractors to derail the immediate Conditional cash transfers to the poor and the vulnerable,” the Minister added.
President Muhammadu Buhari in a live broadcast on Monday told the ministry to continue the disbursement of cash transfers and food distribution to vulnerable households as efforts to tackle the COVID-19 impact on the economy.