Cost Evaluation Of Road Traffic Accident In Nigeria Using Human Capital Approach

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Cost Evaluation Of Road Traffic Accident In Nigeria Using Human Capital Approach


Abstract


Nigeria experiences the highest rate of road traffic accidents resulting in fatalities and various levels of injuries. On Abuja-Lokoja road, traffic accident takes the lion’s share of the risk having highest number of vehicular accidents withcorresponding fatalities and injurieswhich has a great impact on cost and the socio-economic development of the society. It is therefore necessary to gauge the monetary value of these losses in order to highlight the extent of damage incurred to society as a whole. This research is focused on using Gross-Output Model or Human Capital Approach to compute the cost of traffic accident on Abuja-Lokoja road.

The aim of this research is to formulate a model that can be used for estimating the total cost of road accidents at all levels of severity. The extent of injury levels, property damaged and general cost resultingfrom an accident using secondary data were obtained from thePolices, Research and Statistics department of the Federal Road Safety Corps (FRSC) for a period of eleven years (2000-2010).The research was carried out with the aid of questionnaires and interview. The data collected were analyzed using the percentage frequency distribution table and the result was used to cost the property damage cost and the medical cost.

The accident cost was decomposed and quantified based on the accident severity levels.The cost per fatal accident isN 24, 853, 524, the cost per of serious injuries accident isN633.520, and the cost of per minor accident isN 10, 575. 36, the total human cost isN 55, 714, 330,477, the total properties cost isN 890, 067, 000, the police administrative cost isN65, 446, 757. 76 and the total accident cost isN 56,669,844,234.Therefore the cost per vehicle per kilometer is N60,804.03Km-1, the cost per kilometer is N318,369,911 Km-1for Abuja-Lokojaroad. This result is in agreement with other researches carried out using gross output method.


Chapter One


Introduction

1.1 Background to the Study

Accident can be defined as an unpleasant incident that happens unexpectedly; it can also be defined as an incident that happens by chance. Road traffic accident is therefore an unexpected phenomenon that occurs as a result of the use or operation of vehicles, and trucks, on thehighway, when a traffic accident occurs it may be fatal, resulting in deaths of road users (passenger, drivers, or pedestrians); serious when there is no deaths but a person is seriously injured, and minor when it is not serious enough as to cause substantial hardship. When there is no fatality, serious injury, minor or slight injury and only vehicular damage or property damage occurs, it is referred to as damage only accident.

Most citizens use the road at one point in time or the other, and therefore face a risk of road accident. Through road accidents, hundreds of productive citizens die every year. By these, many families have lost their bread winners, many wives have become widows and many husbands rendered widowers, countless number of children have become orphans many songs of victory and jubilations had been turned into morning and wailing overnight. Many dreams are shattered; plans and aspirations are laid to rest in the graves all in name of road accident.


1.2 Statement of Problem

One major problem facing the Nigerian road is rapid deterioration due to construction of far below quality of engineering standards required (CBN, 2000). Also, the rates of accidents causing loss of lives and damages to roads have increased. In fact now, the major roads in Nigeria are in a great state of disrepair. Between 1991 and 1995, the economic cost of road accidents in Nigeria was estimated at about N44 billion or ($554million) (Arosanyin, 2001).
According to Ogunsanya (2006) Nigeria has a total of 193,200 km of roads, made up of 34,123 km of federal roads, 30,500 km of state roads and 129,577 km of local government roads. He further added that in many parts of the country, the roads are in a very deplorable condition having been neglected over the years.

In a CBN report (2000), about 23 percent of national roads were in bad shape since 1985 and that rose to 50percent in 2001. The report further explains that a road study undertaken in 1998 indicated that N300 billion would be required over the next ten (10) years to bring the national road network into a fairly good condition. After the recovery, an average of N24 billion would be required each year for subsequent maintenance and N32 billion per year for road rehabilitation. Further neglect of these roads implies a loss of network value of N80 billion per year and an additional operating cost of N53 billion per year. But, except these roads and bridges are kept in good condition, they cannot support the desired social and economic development of the country.


1.3 Purpose of the Study

This study tends to evaluate the cost implication of road traffic accident in Nigeria using human capital approach.

Other specific objectives include;

  1. To identify the major and minor causes of road accident.
  2. To examine the socio-economic consequences of road traffic accident in Nigeria.
  3. Portray the strategies at minimizing road traffic accidents.

1.4 Research Question

  1. What is the form or extent of road traffic accident that occurs in Abuja-Lokoja road?
  2. What are the possible causes of such accident?
  3. Does the occurrence of such accident has a socioeconomic impact on the individuals involved?
  4. Has there been a reduction in the rate of accident from 2000-2010 in Abuja-Lokoja road?

1.5 Significance of the Study

This study will be of immense importance to the ministry of transportation on getting to be apprised on the cost implication and strategies for reducing the occurrence of road traffic accident. More-also this study will as a relevant material for road transport operator is making some certain critical decision. However other personalities such as researchers, students and the general public will away find this study relevant in making reference of cost incurred in road traffic accident and will use this study to satisfy other personal or academic needs.


1.6 Scope of the Study

This study runs an eleven (11) years cost evaluation of road traffic accident using Abuja-Lokoja road as case study.


1.7 Definition of Terms

Accident:

An unfortunate incident that happens unexpectedly and unintentionally, typically resulting in damage or injury.

Traffic:

Is the number of vehicles moving along roads, or the amount of aircraft, trains, or ships moving along a route

Cost:

A cost is the value of money or monetary equivalent of something.


Chapter Five


Summary, Conclusions and Recommendations:

5.1 Introduction

This chapter summarizes the findings into the “cost evaluation of road traffic accident in Nigeria using human capital approach”. The chapter consists of summary of the study, conclusions, and recommendations.


5.2 Summary of the Study

In this study, our focus was to examine cost evaluation of road traffic accident in Nigeria using human capital approach using Abuja-Lokoja road as case study. The study specifically was aimed at identifying the major and minor causes of road accident; to examine the socio-economic consequences of road traffic accident in Nigeria; Portray the strategies at minimizing road traffic accidents.

The study adopted the Human Capital Approach for data analysis since it was an 11 years study of human life and property cost of road traffic accident.

The study reveals that accidents which occurs in Abuja-Lokoja road, is either, severe, fatal, serious or slight. It was further disclosed that there are many factors responsible for the occurrence of such accidents which is categorized in to human factors, social factors and infrastructural factors. The accidents which occurred has a socioeconomic effect on the individuals involved and the rate of accident from 2000-2010 has not reduced.


5.3 Conclusions

The accident cost was decomposed and quantified based on the accident severity levels. The cost per fatal accident is N 24, 853, 524, the cost per of serious injuries accident is N633.520, and the cost of per minor accident is N 10, 575. 36, the total human cost is N 55, 714, 330,477, the total properties cost is N 890, 067, 000, the police administrative cost isN65, 446, 757. 76 and the total accident cost is N 56,669,844,234.Therefore the cost per vehicle per kilometer is N60,804.03Km-1, the cost per kilometer is N318,369,911 Km-1for Abuja-Lokoja road.


5.4 Recommendations

  1. The driver of a vehicle is the most important single factor in road traffic crash. The production of high quality drivers is consequently non-negotiable. The two basic requirements in producing high quality motor vehicle drivers is proper training and licensing programmes.
  2. Just like vehicles, the condition of the road infrastructure is also very important when thinking of improving road safety records in Nigeria. The state of the federal roads in Nigeria, to say the least, is deplorable. So the government should consider it as a priority to maintain and fix roads.
  3. There is need for enforcement which is the bane of road safety in Nigeria because when enforcement of traffic regulations is lax, violation of these regulations becomes a common practice and this could lead to complete disregard for the regulation in the long run. Hence, for traffic laws to be effective there must be enforcement.

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