The Power Holding Company of Nigeria (PHCN) is a ________

Step 1: Analyze the question The question asks what type of business organisation PHCN (Power Holding Company of Nigeria) is, based on its ownership and purpose.

Step 2: Explain the concept Business organisations in Nigeria are classified by ownership:

• Public limited company (PLC): Owned by private shareholders, with shares sold to the general public and often listed on the Stock Exchange (e.g., Dangote Cement Plc).
• Private limited company (Ltd): Owned by a few private individuals, and its shares are not sold to the public.
• Public corporation: Owned and controlled by the government and set up by an Act of the National Assembly (or a decree). Its main goal is to provide essential services to the public, not just to make profit. Examples are NNPC, NEPA/PHCN, NITEL, the Nigerian Railway Corporation, and the Nigerian Ports Authority.

Step 3: Apply to PHCN

• PHCN (formerly NEPA, the National Electric Power Authority) was wholly owned by the Federal Government.
• It was established by law to generate, transmit and distribute electricity, which is an essential public utility.
• Its focus was on public service rather than profit alone.

These features match the definition of a public corporation.

Step 4: Check the other options

• A. Public limited company: Wrong, because it is owned by private shareholders, not by the government.
• B. Private authority: Not a standard business classification.
• D. Public liability company: Not a standard classification either. It is a distractor mixing up "public limited company".

Step 5: Answer The correct option is **C.

Exam tip: Remember the rule of thumb: government-owned and providing essential services = public corporation. Think of NEPA/PHCN, NNPC, and NPA. If the name has "Plc", think shareholders and the Stock Exchange.