Theory question 105
Public Corporations(a) State three reasons for the establishment of public corporations in Nigeria.
(b) As a policy advisor, examine four ways by which the application of the principle of commercialization would address the problem of inefficiency of public corporations in Nigeria.
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(a) Any three: to provide essential services at affordable prices; to control strategic sectors (power, railways, ports); to generate revenue for government; to create employment; to prevent private monopoly and exploitation; to promote development where private investors will not invest.
(b) Any four: makes them run on profit-oriented business lines; reduces dependence on government subventions; brings in professional managers and performance targets; cost-based pricing improves revenue; reduces political interference; promotes accountability for results; encourages innovation and better customer service; reduces waste and overstaffing.
Three reasons; four ways commercialisation helps.