NIWRMC: Diversifying Revenue Generation through Water Regulations and Licencing

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NIWRMC: Diversifying Revenue Generation through Water Regulations and Licencing
NIWRMC: Diversifying Revenue Generation through Water Regulations and Licencing

By Fatimah Yusuf

In the world today, water regulations have become paramount because the resource is very crucial for human survival and industrial use. Water is vital for development of many sectors such as food and agricultural productions, industrial processes, energy generation for power, aquatic life, environments, recreation and tourism.

Due to the need for water regulations in the country, the Nigeria Integrated Water Resources Management Commission (NIWRMC) was established in May, 2007 by the Federal Executive Council.

The Commission is enabled by Section 17 of the Water Resources Act (Cap W2) Law of the Federation of Nigeria 2004 while Section 19 gave power to the Honourable Minister to make regulations for smooth running of the operations.

The creation of the Commission with field offices in 8 hydrological areas and catchments across the country was basically to assist the Honourable Minister of Water Resources to regulate and control the rights of all people to develop and use water resources shared by more than one state for sustainability, better economic efficiency, social equity and fairness.

The primary role of the Commission is to rationalize and streamline the indiscriminate development, use, diversion of and regulation of water affecting more than one state while the goals of the Commission are to develop roadmap and standards in close collaboration with all major stakeholders including relevant institutions at all levels of government, the civil society and community based organizations so as to achieve synergy to further foster socially equitable, economically efficient and environmentally sustainable use and management of water.

In line with the global best practices and the 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.

According to the United Nations Environment Programme (UNEP) “Integrated Water Resources Management (IWRM) is a process that promotes the coordinated development and management of water, land and related resources in order to maximize economic and social welfare in an equitable manner without compromising the sustainability of vital ecosystems”.

IWRM was established back in the 1930s to address optimal water management while taking into consideration social goals such as the fulfillment of basic needs and the total welfare of the populace. IWRM is a broad framework in which decision makers can decide the goals of water management and coordinate the use of different mechanisms to achieve them, knowing that each country differs in terms of history, socio-economic and environmental characteristics, therefore, there is no single blueprint for IWRM but it can be adapted to resolve the problems faced in each country.

Chris White, in his work titled ‘Integrated Water Resources Management: what is it and why is it used? “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

  1. Fresh water is a finite and vulnerable resource essential to sustain life, development, and the environment
  2. Water development and management should be based on a participatory approach, involving users, planners and policy makers at all levels
  3. Women play a central part in the provision, management and safeguarding of water
  4. Water has an economic value in all its competing uses and should be recognized as an economic good”.

Water resources is managed by established organizations, backed by laws in the world. In South Africa for instance, the National Water Act of 1998 guarantees that South Africa’s water resources under the Department of Water and Sanitation (DWS) ensures that the water resources is protected, developed, used, managed, controlled and conserved in an equitable and sustainable manner for the benefit of all people of South Africa. DWS also controls, regulates and supports the delivery of effective water supply and sanitation.

In USA, the Clean Water Act (CWA) was enacted in 1948 and was named the ‘Federal Water Pollution Control Act’. However, the Act commonly called the ‘Clean Water Act’ was amended in 1972. CWA is responsible for regulating discharges from pollutants into waters and quality standards for surface waters.

The Minister of Water Resources and Sanitation, Professor Joseph Utsev, during his familiarization visit to NIWRMC, said he will work with the National Assembly to actualize the law establishing the Commission.

He noted that the Commission is mandated with the responsibility of ensuring proper administration and management of safe and sustainable water for Nigerians.

The Minister stated that the passage of an establishment Act for the Commission will 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 licences by NIWRMC to operate; Nigeria Electricity Supply Cooperation 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; Nestle Nigeria PLC for commercial Bottle water in Abuja.

Others are Royal Gem Multi sector Ltd for drilling contractor’s licence in Oyo State; Kano State Water Board for drilling of 6 boreholes for Nigeria Bottling Company (NBC) Challawa plant in Kano State; Scan Water (Nigeria) Ltd for Water Quality Laboratory and Water Analysis Center Licence in Lagos State; Real Drill Hydro Consult Ltd for water well drilling contractor’s licence 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; Chad Basin Development Authority for Gashua Irrigation Scheme in Yobe State and many more companies.

From the foregoing, the Commission, as a regulatory and revenue generating agency is striving to establish a framework through the licences it issues to allow companies operate legally, this has boosted the country’s economy and contributed in making Nigeria compete favorably with other parts of the world. The Commission has generated over N74 Million through issuance of licences in the last five years.

Diversifying revenue generation through water regulation and licencing will fast tract the development of other sectors such as agricultural productivity and enhancing food security, provision of hydroelectric power, promotion of industrial development, education, health care system, water, road construction and other infrastructural development in the country.

Enactment of the bill establishing Nigeria Integrated Water Resources Management Commission (NIWRMC) by the National Assembly will lead to an increase in the generation of revenue for the country thereby translating the Commission into a major competitive contributor of revenue, away from oil. NIWRMC is committed to generating revenue through the issuance of licenses to raw bulk water users thus impacting positively on the Nigerian economy.

***Yusuf is the Resident Information and Public Relations Officer of NIWRMC