Cost indices assessment of road accident on Nigerian federal highways: Case study of Ogun State
Nigeria is currently listed among countries in the world with the highest traffic injuries and fatalities. However, information on road accident costs which is important in the assessment of the National Road Safety Policy of the Country is sparse. This paper attempts to address this draw back through the assessment of cost of road accident on Federal highways in Ogun State based on dominant costs model using human capital approach for different accident severity levels. Road accident data between the period 2010 and 2012 were obtained with indices on human and economic production losses in addition to the direct accident costs (medical costs, claims from insurance company and property damage). The financial loss equivalent value of each of these components were estimated in terms of four types of accident severity namely, property damaged only, slightly injured, seriously injured and fatal. The severity of the fatality and others within the period under review stood at 548, 1934, 2533 and 57, 303, 36 while the total number of road accidents were 291, 754 and 875 respectively. The average traffic accident cost per one dead for 2012 was ₦9,978,577.44 and the cost per fatal was ₦19,957,154.87. The huge economic loss could provide basis for certain measures to be initiated to improve traffic safety level on these highways.