Water Regulation, Licensing Fundamental To Diversifying Revenue Generation-NIWRMC

The Nigerian Integrated Water Resources Management Commission (NIWRMC) has emphasised that effective water regulation and licensing are crucial for diversifying revenue generation in the country.

In a statement issued by the resident information and public relations officer of NIWRMC, Fatimah Yusuf, the commission highlighted the potential of water resource management as a significant contributor to the nation’s economy.

The statement stressed the need for comprehensive policies and strategic implementation to harness this potential.

“In the world today, water regulations have become paramount because the resource is crucial for human survival and industrial use.

Water is vital for developing many sectors such as food and agricultural production, industrial processes, energy generation for power, aquatic life, environments, recreation, and tourism,” the statement reads.

The NIWRMC was established in May 2007 by the Federal Executive Council to address the need for water regulations in the country. The commission is enabled by Section 17 of the Water Resources Act (Cap W2) Law of the Federation of Nigeria 2004, while Section 19 empowers the minister to make regulations for smooth operations.

“The creation of the commission, with field offices in eight hydrological areas and catchments across the country, was primarily to assist the honourable minister of water resources in regulating and controlling the rights of all people to develop and use water resources shared by more than one state. This aims to ensure sustainability, better economic efficiency, social equity, and fairness,” the statement added.

The commission’s primary role is to rationalise and streamline the indiscriminate development, use, and diversion of water affecting more than one state. It aims to develop a roadmap and standards in collaboration with major stakeholders, including relevant institutions at all levels of government, civil society, and community-based organisations. This collaboration seeks to foster socially equitable, economically efficient, and environmentally sustainable use and management of water.

“In line with global best practices and efforts to reposition the water sector to meet the emerging challenges of social and economic development, the Federal Government of Nigeria adopted the Integrated Water Resources Management (IWRM) approach in the formulation of policy and planning of water resources management and regulations,” the statement noted.

The United Nations Environment Programme (UNEP) defines Integrated Water Resources Management (IWRM) as a process that promotes the coordinated development and management of water, land, and related resources to maximise economic and social welfare equitably without compromising the sustainability of vital ecosystems.

Chris White, in his work titled “Integrated Water Resources Management: What is it and Why is it Used?” explains, “IWRM is a framework designed to improve the management of water resources based on four principles adopted at the 1992 Dublin Conference on Water and Rio de Janeiro Summit on Sustainable Development. These principles hold that fresh water is a finite and vulnerable resource essential to sustain life, development, and the environment; water development and management should be based on a participatory approach involving users, planners, and policymakers at all levels; women play a central part in the provision, management, and safeguarding of water; and water has an economic value in all its competing uses and should be recognised as an economic good.”

The statement noted that water resources are managed by established organisations backed by laws worldwide. For instance, South Africa’s National Water Act of 1998 ensures that the country’s water resources under the Department of Water and Sanitation (DWS) are protected, developed, used, managed, controlled, and conserved equitably and sustainably for all South Africans. Similarly, the USA’s Clean Water Act (CWA), enacted in 1948 as the Federal Water Pollution Control Act and amended in 1972, regulates discharges of pollutants into waters and sets quality standards for surface waters.

The statement highlighted that during his familiarisation visit to NIWRMC, the minister of water resources and sanitation, Professor Joseph Utsev, stated that he would work with the National Assembly to actualise the law establishing the commission. He noted that the commission is mandated to ensure the proper administration and management of safe and sustainable water for Nigerians. The passage of an establishment Act for the commission would enhance its capacity to enforce regulations on users of raw bulk water from transboundary sources for commercial purposes.

“Many companies and organisations across the country have been issued licenses by NIWRMC to operate. These include Nigeria Electricity Supply Corporation Limited for hydro-electric power generation in Plateau State, Manomi Support Services Ltd for Demsa paddy cultivation in Adamawa State, Great Northern Agricultural Business Ltd for GNAL irrigated sugarcane plantation estate and factory in Jigawa State, and Nestle Nigeria PLC for commercial bottled water in Abuja.

“Other licensees include Royal Gem Multisector Ltd for a drilling contractor’s license in Oyo State, Kano State Water Board for drilling of six boreholes for Nigeria Bottling Company (NBC) Challawa plant in Kano State, Scan Water (Nigeria) Ltd for Water Quality Laboratory and Water Analysis Center License in Lagos State, Real Drill Hydro Consult Ltd for a water well drilling contractor’s license in Osun State, Niger Mills Calabar for industrial milling in Cross River State, Kiara Rice Mill Ltd for operation of Kiara rice mill in Niger State, and Chad Basin Development Authority for Gashua Irrigation Scheme in Yobe State, among others.

“As a regulatory and revenue-generating agency, the commission strives to establish a framework through the licenses it issues to allow companies to operate legally. This has boosted the country’s economy and helped Nigeria compete favourably on the global stage. The commission has generated over N74 million through the issuance of licenses in the last five years,” it said.