Method of Application

  • An Application for a licence shall be made in writing addressed to the Executive Director, Nigeria Integrated Water Resources Management Commission, at its headquarters and delivered by hand or sent by regular mail courier.
  • An Application shall be signed and dated by the authorised representative of the applicant.
  • An Application form shall be obtained completed in three (3) hard copies along with an electronic version in Microsoft Office software format contained in an CD-ROM and submitted to the Commission with evidence of payment of appropriate processing fees.

   Documentary Accompaniments To Water Licence Application

In general, all Applications for water licence shall be accompanied with all the information and documents specified in the application form relating to the specific licence being applied for, as outlined in Chapter Five of this Manual.

  • Publication of Notice of Application
  • Within sixty (60) days after receiving the official acknowledgment that an Application has been duly made, the Applicant shall at his/her own expense, cause a notice of the Application, in the form and manner prescribed by the Commission to be published.
  • The notice shall be published in at least two (2) daily newspapers, which should cover a half page, one of which must be a local newspaper, and shall state the period within which any objection or representation in connection with the application may be made to the Commission. The Applicant shall forthwith send a copy of each of the newspaper publications to the Commission.
  • The Commission shall not issue any licence until all objections or representations regarding the Application received by the Commission, have been considered.
    • Mandatory Contents Of The Business Plan For Applications For A Licence

The business plan submitted by the applicant pursuant to Schedule 1 of the Water Use Regulation should include the following:

  • The Business Profile
  • Business Name;
  • Main object of the business;
  • Company incorporation date (evidence by submission of Certificate of Incorporation);
  • Authorised and Paid-Up Capital;
  • Name of Shareholders and their respective holdings;
  • Information on related or commonly owned business; and
  • Evidence of Joint Venture Agreement (where relevant).
    • Nature Of The Proposed Business
  • Proposed business for which the licence is being sought: hydropower, irrigation, aquaculture, tourism, mineral mining, etc;
  • Company/Promoters experience in the line of business;
  • Historical financials (Audited Accounts) for at least the past three (3) years. If the company is new and has no historical financials, the historical financials of the major corporate sponsor, if any, should be provided.
  • Tax clearance for the previous three (3) years.
  • Value Added Tax (VAT) Certificate;
  • Evidence of filling Annual Returns with the Corporate Affairs Commission (CAC);
  • Evidence of compliance (from PENCOM) with respect to the statutory obligations of the company’s employees with respect to Pensions (where applicable); and
  • Evidence of compliance with the statutory provisions of Industrial Training Fund (Amendment) Act, 2011 (where applicable.
    • Financial Projection [for the Duration of the Licence or a Minimum of Five (5) Years]
  • Profit and Loss Account (P&L);
  • Balance Sheet;
  • Cash Flow Statement;
  • Breakeven Analysis;
  • Net Present Value (NPV);
  • Internal rate of Return (IRR);
  • Pay-Back Period (PBP).
    • Funding Needs and Sources
  • The project cost;
  • The financial method;
  • The cost implication of each financial source;
  • Proof of debt source (offer letter from the lender or a letter of undertaking from the financial institution);
  • Shareholders Agreement;
  • Proposed term of debt for financial or loan agreement (if any);
  • Assumptions/basis for the projected financials;
  • Turnover (Turbine capacity, energy sent out, tariff (for hydropower), crop tonnage, fisheries, cropping, etc;
  • Capital expenditure;
  • Operational expenditure (especially salaries and wages, maintenance, fuel pricing);
  • Dividend policy;
  • Depreciation; and
    • Detailed Market Study Report, Covering The Following Areas:

۞    Supply analysis with information/data on names, location and capacities of existing and known potential competitors. Trend of future supply (local + import);

۞    Demand analysis comprising factors influencing demand, estimate of domestic demand, export potentials – based on current future trend;

۞    Market prospects with information on existing planned market arrangement including agreements reached with potential off-takers/customers, current and proposed tariff vis-à-vis competitors. The basis for pricing strategy as well as the proposed tariff structure intended. The tariff assumption should indicate whether a single or multiple tier tariff policy is proposed (i.e. energy only or a combination of energy, capacity and ancillary services) for hydropower;

۞    Local content/proposed impact of project on surrounding economies/communities; and

۞    Plans to value-adding processes to harvested products.

  • Technology Requirements

Ѳ      The technology to be adopted;

Ѳ      The advantages it offers against other competing technologies;

Ѳ      The source of the technology;

Ѳ      Quality intentions of targets;

Ѳ      Technical partnership (resume and experience in similar project);

Ѳ      Operation and maintenance agreement; and

Ѳ      ICT support strategy.

  • Machinery and Equipment
  • Comprehensive list of machinery with detailed specification source(s) and prices;
  • The terms of equipment supply;
  • Maintenance contract;
  • Proposed procurement process.


    • Detailed Feasibility Study Report To Include, Among Others:
  • Site Map: showing fuel delivery and storage locations, transmission, evacuation site, water pipelines, gaseous liquid and solid waste disposal areas, etc;
  • Location Map: showing roads, rail lines, transmission lines, rivers, reservoir, etc;
  • A principal single-line diagram of the project site
  • Water supply and availability analysis for plant/staff use;
  • Distance to site;
    • Organisational Structure
  • Organogram;
  • Experience and expertise of the management team of the company (attach CVs);
  • Experience and expertise of the technical staff manning the power plant (attach CVs);
  • Job specification/schedule;
  • Number of people to be employed (separated into technical and non-technical category); and
  • Number of expatriates and the position they will hold.
    • Project Risk And Mitigation
  • Political risk and mitigants;
  • Business risk and mitigants;
  • Financial risk and mitigants;
  • Other identified risks and mitigants.

Environmental Assessment

Environmental Impact Assessment Certificate from the Federal Ministry of Environment.

  • Social Impact Report To Be Approved By The Federal Ministry of Water Resources.