The transfer of public share holding in corporations to private enterprise is___________?

1. Analyze the question The question asks for the term used when government (public) shares in corporations are transferred to private individuals or firms.

2. Explain the concept

• Privatization: The transfer of ownership of public enterprises, whether shares or assets, from the government to private individuals or organizations. In Nigeria, this was done under the Bureau of Public Enterprises (BPE), for example with NITEL and the power sector.
• Commercialization: The government keeps ownership but runs the enterprise on business principles, so it can make profit and become self-sustaining with less subsidy.
• Concession: The government grants a private firm the right to operate or manage a public asset for a period (e.g., port terminals), but ownership stays with the government.
• Incorporation: The legal process of forming a company as a separate legal entity.

3. Step-by-step solution

• Key phrase: "transfer of public shareholding... to private enterprise". This means ownership changes from public to private.
• Commercialization (D) does not transfer ownership, so it is out.
• Concession (B) only transfers the right to operate, not ownership, so it is out.
• Incorporation (A) is about forming a company, so it is out.
• Only Privatization involves a change of ownership from the public to the private sector.

4. Answer The correct option is C. Privatization.

5. Exam tip Remember: Privatization = Private ownership, while Commercialization = Customer-focused business management under government ownership. If a question mentions a transfer of shares or ownership, think privatization.