Meaning of Public Enterprise:
These are enterprises/corporations owned and run by the government in the public interest. These businesses are run by the government with taxes collected from the citizens.
It is also known as public corporation or statutory corporation.
Examples of these corporations are the;
1. Nigeria Railway Corporation (NRC)
2. Federal Radio Corporation of Nigeria (FRSC)
3. National Electric Power Authority (NEPA) which is now the Power Holding Company of Nigeria (PHCN)
4. Nigeria Port Authority (NPA)
5. National Sports Commission (NSC), etc.
Formation and Management:
Public enterprises can be categorized into public corporations or boards and quasi-government departments.
Public corporations are government enterprises that have commercial functions which are established at the federal level by an act of parliament. The act states the objectives and aims of the corporation and specifies its power and how it is to be run and managed. For example, the former National Insurance Corporation of Nigeria (NICON) is now privatized and established by decree 22 of July 1969 to underwrite all classes of insurance such as fire, motor, accident, marine, and aviation.
The former Nigerian Ports Authority (NPA) was established in 1955 to identify and satisfy the demands for ports facilities and services at minimum cost to the nation. The Nigerian Enterprises Promotion Board was established in 1972 to advance and promote enterprises in which Nigerians are encouraged to participate fully and to play dominant roles. Other corporations and boards at the federal level are;
1. The Federal Radio Corporation of Nigeria
2. The Federal National Petroleum Corporation
3. The Nigerian Railway Corporation
4. The Nigerian Coal Corporation
5. The National Provident Fund Management Board.
6. The Nigerian National Shipping Line Ltd (NNSL) etc.