Giving these bandits what they want will only encourage more bandits and terrorism.
The government should use the money to buy drones and increase security in the country. Lack of the right weapon, increase in surveillance and lack of rapid development in modern technology is the problem Nigeria is having right now.
Nigerian navy already uses
Drone technology, they have good intelligence to track and eliminate these bandits, but of course we know that this banditry is persistent and successful because it's politically motivated and it's a new hustling point for government officials.
As Abacha rightly said:

There should be no negotiation with terrorists, the military men knows their hideouts, they see them, but cannot do anything because the orders from above are stopping them from acting decisively. I had a chat with the family member of a kidnapped victim and he told me blankly that the secure point for ransom collection which they used was protected by 3 military checkpoints and at each checkpoint, the military men took their share from the ransom. The money was incomplete before they reached the bandits and when they were told it was the military men that collected money from it, that was when they agreed to release the hostage.