Government Chooses In-House Control For National Identity Card Programme

The Government of Nepal, through the Department of National ID and Civil Registration under the Ministry of Home Affairs, has cancelled an international tender for technical support of the National Identity Card Management Information System (NIDMIS). The tender was cancelled in Kathmandu on May 8, 2026, as the government decided to manage the system internally to keep sensitive citizen data under national control and reduce dependence on foreign contractors, even as printer failures, server problems, lower card production, and a growing backlog continue to affect millions of applicants across Nepal.

The move reflects the government's broader goal of keeping sensitive citizen information under domestic control and reducing dependence on foreign technology providers. Officials believe managing the system internally will strengthen Nepal's digital independence, while critics and technical experts question whether enough specialised expertise currently exists to operate and maintain such a complex infrastructure without external assistance.

The decision was taken by the Department of National ID and Civil Registration under the Ministry of Home Affairs, with policy backing from the Office of the Prime Minister and Council of Ministers. The change will directly impact millions of citizens, government agencies, banks, educational institutions, and service providers that increasingly rely on the national identity system.

Nepal has cancelled an international procurement process that was intended to secure technical support for the operation and maintenance of the national identity card system. Instead of hiring a foreign technology partner, the government plans to manage the system itself and recruit the expertise required to keep it running.

The tender process was cancelled on May 8, 2026, and the policy became a major public issue following reports released in June 2026, as concerns over production delays and technical capacity continued to grow.

The decision was made in Kathmandu, but its effects will be felt nationwide because the national identity card is becoming a requirement for an increasing number of public and private services across Nepal.

The government says the primary objective is to strengthen national control over sensitive citizen data and reduce long-term reliance on foreign contractors. At the same time, officials hope the move will support Nepal's broader effort to centralise digital governance and build domestic technological capability.

However, the transition comes with significant challenges. Card production has fallen sharply, millions of applicants remain in the queue, and recent technical issues have exposed weaknesses within the system. The success of the new approach will therefore depend on whether the government can quickly develop the expertise, infrastructure, and maintenance capacity needed to operate one of Nepal's most important digital platforms independently.