Water resources in Nigeria are becoming scarce on a daily basis as it shares multifunctional purposes such as irrigation, hydropower, water supply, fisheries, eco-tourism. Monitoring water resources, clean, drinkable and portable for the purposeof its intention, is based on measuring impacts and ensuring restoration. The present study focuses on improving understanding of water footprint, managing risks, and operation activities centered on water consumption through the use of non-fresh water sources, reusing and recycling produced water. This paper cross-examines the current situation and proposes sustainable application of caution using environmental impact assessment as a tool to expose areas of concern and analyze benefits and actions in handling water resource, ecological degradation, and suggests an efficient system of pollution monitoring.