The federal government has terminated the contracts of two payment service providers (PSP) for failing to meet up with the contractual agreement to commence conditional cash transfer (CCT) to beneficiaries in four states.

In a statement on Tuesday, Sadiya Umar Farouq, minister of humanitarian affairs, disaster management and social development, listed the affected states as Bayelsa, Akwa Ibom, Abia, and Zamfara.

She earlier said the ministry had commenced cash transfer to the poorest households in the country to cushion the effects of the coronavirus pandemic.

The PSP which contracts were terminated are Data Mining Company and Innovative NIPOST.

According to her, the termination is in line with the World Bank procurement guidelines to ensure that payments commenced in the affected states on or before April 28.

“The Federal Government cannot accept delays in the current payment round of N20,000 stipends to beneficiaries in poor and vulnerable households under any excuse in the four states or any other state of the federation,” she said.

“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 CCT to the poor and the vulnerable.”

On Monday, President Muhammadu Buhari extended the lockdown in the federal capital territory (FCT), Lagos and Ogun states.

The president said he decided to extend the lockdown to ensure that the disease which is now being spread within communities is checked.