In Nigeria, public corporations are established by

1. Analyze the question The question asks about the legal instrument used to create public corporations in Nigeria. Public corporations are government-owned bodies, such as NNPC, NEPA (now PHCN/successor companies), and the Nigerian Ports Authority, set up to provide services or run businesses on behalf of the state.

2. Explain the concept A public corporation cannot simply be created by anyone's wish. It needs legal backing, which gives it a separate legal personality (it can sue and be sued, own property, and sign contracts). In a democracy, that backing normally comes from a law passed by the legislature, which in Nigeria is the National Assembly (the "parliament"). Such a law is called an Act, and it spells out the corporation's powers, functions, and structure.

3. Step-by-step solution

• A. Executive order: This is a directive from the President to run government affairs. It is not the standard way to create a corporation.
• B. Bye-law: This is a rule made by a local government council for its area. It is too limited to create a national corporation.
• C. Act of parliament: This is the standard method. The legislature passes an Act establishing the corporation. ✔
• D. Military decree: Some corporations were created this way during military rule. However, a decree is not the normal or general method, and the question asks about the usual way in which they are established.

4. Answer The correct option is C. an act of parliament.

5. Exam tip Remember: "Public corporation = Public law." An Act of the National Assembly (or a state law for state-owned corporations) creates it. Also remember that a decree was the military equivalent of an Act. If both "Act" and "decree" appear and the question says "normally" or "generally," choose the Act.