Rural telephony programme not completed

5 Aug 2004

UK company Rural Radio System (RRS), which won a contract from the Nigerian government to provide equipment for the country’s rural telephony programme, has allegedly taken the USD3.2 million first payment but failed to complete the job. Under the terms of the deal RRS was required to roll out services to 125 local government areas across the country, but after commencing work in three areas of Ogun State disappeared with the money. In what appears to have been a major administrative error, the contractor was given the USD3.2 million payment – around 80% of the total value of the deal – when it was only due to receive 20% of the sum prior to completion. The government said it is working to either push RRS to finish the job or revoke the contract, award it to another company and seek legal redress from RRS.