provide essential services like electricity, postal services, pipe borne water etc. A public corporation is that form of public enterprise which is created as an autonomous unit, by a special Act of the Parliament or the State Legislature. Examples of public corporations are: Nigerian Communications Commission (NCC), Nigerian National Petroleum Corporation (NNPC), Nigerian Ports Authority (NPA), Nigerian Television Authority (NTA), Power Holding Company of Nigeria (PHCN), National Bureau of Statistics (NBS), National Teachers Institute (NTI), ...
Purpose for Establishing Public Corporations
1. Provision of Essential Services: public corporations are set up mainly to provide essential services for the people. For instance, transport services, electricity supply etc.
2. Huge capital Involvement: public corporations are to provide such services which cannot be provided by individuals due to huge capital needed. For instance, railway.
3. To prevent Exploitation: public corporation help to prevent private individual from getting involved in from certain services which may result in exploitation of the people.
4. Raising people’s Standard of Living: increase in productivity and constant supply of these essential services can improve the standard of living of the people.
5. For Efficient Management and proper Control: government have the means and potentials to manage certain services better. This will create room for efficiency and regular supply of these essential services.
6. Provision of Employment: another reason for setting up public corporation is to provide employment opportunities for the people.
7. For Economic Growth: efficient and adequate provision of essential facilities can stimulate or generate investment for both local and foreign businesses
Features of Public Corporations
i. Owned by the Government: public corporations are owned and controlled by government, not private individuals.
ii. They are created by Special Act: public corporations are created by an Act of parliament.
iii. They have Legal Standing: the corporations have legal standing, they are legal
entities that can sue and be sued.
iv. They are Created for Essential services: they are mainly set up to provide essential services for the people.
v. They have Board of Directors: there are board of directors which direct the affairs of public corporations.
vi. The Workers are Public Servants: workers in public corporations are referred to as public servants.
vii. Not for Profit Making: profit making is not the main motive of establishing public corporations, but to render essential services to members of the public
Functions of Public Corporations
a. Provision of Employment: another reason for setting up public corporation is to provide employment opportunities for the people.
b. Provision of Essential Services: public corporations are set up mainly to provide essential services for the people. For instance, transport services, electricity supply etc.
c. To prevent undue Exploitation: public corporation prevents a few individuals from exploiting the people, if they are allowed to provide such services.
d. Revenue Generation: public corporations generate revenue for the government.
e. Promote Economic Development: the setting up of different corporations enhances the prospect for economic development
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