FG terminates contracts over cash transfer delays in four states

The Minister of Humanitarian Affairs, Disaster Management and Social Development, Sadiya Umar Farouq, has directed the immediate termination of the contract for a Payment Service Provider (PSP) for failure to meet the contractual agreement to commence Conditional Cash Transfer (CCT) to beneficiaries in four states of the federation.

The affected states are Abia (South East); Bayelsa and Akwa Ibom (South-South) and Zamfara (North West).

According to a statement issued by the Special Adviser on Media to the Minister, Mr Salisu Na’inna Dambatta, the two defaulting Payment Service Providers are Data Mining Company and Innovative NIPOST.

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Hajia Sadiya Farouq maintained that 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 payments commence in the affected states on or before April 28, 2020.

The Minister who expressed displeasure over the unethical practice argued 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 providers 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.

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