THE IMPACT OF DISASTER RISK MANAGEMENT ON THE DEVELOPMENT OF SMALL SCALE BUSINESS IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1     Background to the study

There are evidence to suggest that in many countries there has been an increase in the rise of natural disasters occurring – natural hazard rise – due to environmental degradation (World Bank 2002). Natural disasters are complex and multifaceted events resulting from mismanaged and unmanaged risks that reflect current condition and historical factors (Alexander 2000). Disaster risk is collective in its origin and remain a ‘public,’ shared risk that makes finding individual, and often community solutions, difficult (comfort 1999). A disaster is said to take place precisely because the losses originated by a given event overwhelm the capacity of a population (local, regional or national) to respond and recover from it. Disaster rise emerges from the interaction between a natural hazard – the external risk factor – and vulnerability – the internal risk factor (Cardona 2001).

International consciousness rising about integrated disaster risk management (of which disaster risk mitigation is a part) was given a boost by the recently concluded United Nations International Decade for Natural Disaster Reduction.

Similarly, The Nigerian Disaster Management Act (Act 57 of 2002) heralds a new era as far as the way in which disaster risk, hazards and vulnerability will be perceived in Nigerian in the future. As one of the finest pieces of legislation ever promulgated in Nigerian, the right into the backyard of each and every state and local municipality, as well as all the organs of the state and entities in the public sector.

It calls for the establishment of structures, frameworks, plans, procedures, and strategies that cut across all government sectors. It introduces a new way of managing the complex and perilous society in which we find ourselves. It further gives the responsibility of managing disaster risks to the highest political authority in each sphere of government.

The cornerstone of successful and effective disaster risk management is the integration and coordination of the entire role – players and their activities into a holistic system aimed at disaster risk reduction. Disaster risk reduction in Nigerian consists of a variety of crosscutting facts requiring the participation of a host of sectors and disciplines, not only from within the spheres of government (Federal State and Local), but involving the private sector, civil society, Non-Governmental Organization (NGOs), Community-Based Organizations (CBOs), Research Institutions, and Institution of higher Learning, to name but a few. In the context of disaster risk management, none of these role-players can act in isolation from the other.

Disaster Risk Management in Nigeria has been established as a public sector function within each sphere of government. But disaster risk management goes beyond pure line function responsibility. Disaster Management Act (Act 57 of 2002) as an integrated, multi-sectoral, multi-disciplinary approach aimed at reducing the risks associated with hazards and vulnerability. It therefore needs to become an integral part of the development planning.

Process in order to be successful. For this reason disaster risk management plans form an integral part of the Integrated Development Plan of each of this state. In the light of this the budgeting process within the state government sphere in Nigeria, aiming at sustainable development within state government, the direct like with disaster risk management is undeniable of strategic importance. Development planning should therefore be assessed according to its contribution towards either risk reduction or disaster risk augmentation.

Unfortunately, the current policy and legislation do not provide adequate guidance to state government in terms of funding arrangements for disaster reduction, response and recovery. Various funds and funding mechanisms are available; this leads to a consideration amount of confusion. The need to consolidate all disaster reduction and response-related funding into one funding pool is well known and has been already discussed within the disaster management fraternity.

Although this would be the ideal situation, it is not realistic to assume that an all-inclusive fund would be in any way possible given the public financial infrastructure of Nigeria. It is against this background that this research is triggered and search light is put to northern Nigeria sequent to the current security challenges and flood that have brought untold hardship to people in the North.

1.2     Statement of problem

The act establishing the National Emergency Management Agency (NEMA) of Nigeria makes specific provision for the funding of post-disaster recovery and rehabilitation as well as requiring that a disaster management plan should be prepared for a specific  state and should form an integral part of  the state’s overall integrated development plan, such a disaster management plan must indicate measures to reduce the  vulnerability of disaster prone areas, communities and households, as well as the appropriate strategies for prevention and mitigation.

But inspite of this provision, disaster risk management in Nigeria has being characterized with inefficiency arising from mismanagement or unmanaged mitigation as well as post emergency situations. This is owing to unclear processes for accessing funds to manage disaster by states and local government, especially when such funds is to be provided by the federal government. Other problems include corruption and mismanagement of fund provided by donor agencies as well as the inability to mitigate disaster risk by other private institutions.

Notwithstanding states in Nigeria, especially Northern state experience difficulties in making fund available for  establishing and maintaining the disaster risk management arising from the on-going security challenges in Northern Nigeria. In order to address the problem a number of questions need to be answered.

It is against this, that the subject matter: The impact of disaster risk management on socio economic development of Nigeria: A case study of small scale businesses in the Northern part of Nigeria becomes an empirical problem worthy of being investigated.

1.3     Research Questions

The research question below guided this studies:

1.       How effective is disaster risk management on local institutions in Northern Nigerian?

2.       What are the implication of mitigating disaster risk on small scale business in Northern Nigeria.

3.       How do Northern states access funds to manage risk associated with disaster?                                       

4.       How does policy and operational support at state and federal level affect disaster risk management in Northern Nigeria?

          The answer to the above-mentioned questions will determine the gap that exists between disaster risk management and socio-economic development in Northern Nigeria,which this studies focuses

1.4     Objectives of the Study

          The main objective of the study is to examine the impact of disaster management on  development of small scale businesses in Northern Nigeria. The specific objectives of the studies are to:

i.                   Assess the effectiveness of disaster risk management on local institutions in Northern Nigeria.

ii.                 Assess the implication of mitigating disaster risk on small scale businesses in northern Nigeria.

iii.              Determine how funds are provided to manage disaster in Northern states.

iv.              Determine how policy and operational support at state and federal level affect disaster risk management in the Northern Nigeria.

1.5     Research Hypothesis

          Ho1:  Disaster risk management has no significant impact on the

                   socio-economic development of Nigeria.

          HA1: Disaster risk management has a significant impact on the

                   socio-economic development of Nigeria.

                    H02:   Disaster management is very effective in Nigeria

                   HA2:  Disaster management is ineffective in Nigeria

Ho3:   Disaster management is properly funded in Nigeria.

                   HA3: Disaster management is poorly funded in Nigeria.

1.6     Significance of the Study

The study may be beneficial to policy makers in both federal and state government level. Local institutions non government organization, corporate organization as well as scholars and the general public will find this research really significant.

To policy makers in the federal and state level, this study can be used as a basis for formulating policy frame work as regard disaster management.

Local institutions, non governmental organization as well as corporate organizations will find this work really useful in their operations in areas of social responsibility, be a spring board to undertake further research and will also be a good reference materials for student who may wish to use the research report. The study may also add to the existing knowledge on the impact of Disaster Management on the socio economic development of Nigeria.

1.7     Scope of the study

The study covers an examination of the impact of disaster management on the development of small scale businesses in Nigeria. As such the boundary of this study is limited to an investigation of how effective disaster risk management is, and its impact on local institutions in the north with emphasis on small scale businesses. The time frame of this research covers a period from 2007 to 2011.