Give any five reasons why public corporations are established in Nigeria.

Explanation

Reasons why public corporations are established in Nigeria are:

(i) Public corporations are established to avoid wasteful duplication of capital resources.

(ii) To provide infrastructural facilities like roads and railways on which returns may not be forthcoming and which may, therefore, not attract investment from the private sector.

(iii) To prevent monopolistic tendencies resulting in very high prices or charges if undertaken by private enterprises e.g. water, electricity etc.

(iv) Enterprise may require heavy capital outlay that may not be affordable to private enterprises e.g. electricity generation projects.

(v) Control of key industries such as defence or the oil industry in Nigeria in which the government cannot afford competition for strategic reason.

(vi) Government engages itself in economic activities in order to provide essential services at subsidized rates e.g. water.

(vii) To avoid wasteful duplication of capital resources.

(vii) To ensure higher standard by services such as education which require very expensive facilities that may not be affordable to the private sector.