A public corporation is a business organisation that is owned and run by the government. This is a unit that is established to provide services to the public and not for profit purposes. The business unit that is controlled or owned by the local government is called a municipal enterprise.
It is established by the act of parliaments or degree. The public corporation is supervised by the federal government and controlled by boards of directors appointed by the government
Examples of public corporations include Nigeria Port Authority (NPA), Nigerian Television Authority (NTA), Nigerian National Petroleum Corporation (NNPC), Waterboard (Lagos State Water Corporation), National Electric Power Authority (NEPA), Nigerian Railway Corporation (NRC), etc.
Characteristics of Public Corporation:
1. The government provides capital for the running of the enterprise.
2. They are established either by decree or act of parliament.
3. They are not set up to make profit but to provide essential goods and services to the people.
4. They have a specialised area of concentration.
5. The government appoints the board of directors.
6. They rely on the government for survival.
Objectives of Public Corporation:
1. To provide essential services to the public.
2. To provide employment opportunities.
3. To effect the use of large capital for the production of social amenities.
4. Provision of certain key industries for development and growth.
5. To prevent waste and subsidise certain goods.
6. Discourage and prevent foreign monopoly.
7. To raise the standard of living of the people.
Problems of Public Corporation:
1. Negligent attitude of workers causes poor performance in the system.
2. Insufficient funds for the corporation.
3. The performance can be affected as a result of regular interference from the government
4. Favouritism and partiality among the senior officers of the corporation.
5. Inadequate skilled personnel.
6. Misappropriation and corruption of public officers affect the corporation negatively.
7. There is a delay in decision making.
Advantages of Public Corporation:
The following are advantages of Public Corporation;
1. There is continuity in operation.
2. It increases employment opportunities.
3. Increase in government revenue.
4. It increases the standard of living of people and reduces the cost of living
5. There is access to economies of scale.
6. They provide essential services.
7. They have easy access to loans.
Disadvantages of Public Corporation:
The following are disadvantages of Public Corporation;
1. Misappropriation and corruption of funds among workers.
2. They don’t have sufficient capital they entirely rely on government subventions.
3. Poor attitude to work among workers.
4. Delay in decision making.
5. They don’t make the effort to get their own source of income through maximizing profit.
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