ESTIMATES OF COST OF ACCIDENTS IN SOME SELECTED INDUSTRIES IN SOUTHWEST NIGERIA

G. C. Enwerem; A. O. Ajayeoba; W. A. Raheem; K. A. Adebiyi; O. O. Akinyemi

G. C. Enwerem Federal Polytechnic Ede, Ede, Osun State, Nigeria
A. O. Ajayeoba Ladoke Akintola University of Technology, Ogbomoso, Oyo State, Nigeria
W. A. Raheem University of Lagos, Lagos, Nigeria
K. A. Adebiyi Ladoke Akintola University of Technology, Ogbomoso, Oyo State, Nigeria
O. O. Akinyemi Olabisi Onabanjo University, Ago-Iwoye, Nigeria

Keywords: Accidents, Safety Interventions, Safety Practices, Cost of Accident

Abstract

The manufacturing industry is one of the most dangerous branches in light of the frequency of occupational accident. Direct and indirect losses generated by major manufacturing accidents reduce profit and cause management crises. Such losses significantly impact manufacturing business owners, workers, clients and the public. This research evaluated the effect of safety practices on operational performance of some selected manufacturing companies in Nigeria. Ten-year data were collected on yearly basis from four (4) manufacturing industries in Nigeria which are chemical, oil/gas, food/beverages, and metal/fabrication industries on annual record of accidents and annual expenditure on safety intervention programmes. The data were analyzed using existing mathematical models.
The probability of each class of accidents has highest values estimated as: 0.19, 0.52, and 0.68 for fatal, serious and minor accidents, respectively while the lowest was estimated as: 0.03, 0.2, and 0.32 for fatal, serious and minor accidents, respectively. The highest accidents cost of potential consequences of accidents were estimated as N94,701,700, N13,339,567and N2,969,210 for fatal, serious and minor accidents, respectively while the least accidents cost was estimated as N541,072, N1,834,120 and N341,562 for fatal, serious and minor accidents, respectively. However, minor and fatal accidents in metal/fabrication industry has the highest (0.68) and the least (0.03) values of probabilities of occurrence of accident, respectively, while fatal accident in oil and gas industry has the highest cost of accident estimated as N94,701,700 (fatal accident) which is 93.21% of the total cost of accidents in the industry.

Author Biographies

G. C. Enwerem, Federal Polytechnic Ede, Ede, Osun State, Nigeria

Department of Mechanical Engineering

A. O. Ajayeoba, Ladoke Akintola University of Technology, Ogbomoso, Oyo State, Nigeria

Department of Mechanical Engineering

W. A. Raheem, University of Lagos, Lagos, Nigeria

Department of Systems Engineering

K. A. Adebiyi, Ladoke Akintola University of Technology, Ogbomoso, Oyo State, Nigeria

Department of Mechanical Engineering

O. O. Akinyemi, Olabisi Onabanjo University, Ago-Iwoye, Nigeria

Agricultural and Mechanical Engineering Department