One of the demerits of the privatisation of public corporations in Nigeria is?

1. Analyze the question The question asks for a demerit (disadvantage) of privatisation. Privatisation is the transfer of ownership of public corporations from the government to private individuals or companies, as Nigeria did under the Bureau of Public Enterprises (BPE).

2. Explain the concept Privatisation is usually justified by the promise of efficiency, better service, and less government spending. Its common demerits include:

• Job losses: new private owners cut staff (retrenchment) to reduce costs and raise profit.
• Higher prices for services, since the profit motive replaces the social-service motive.
• Concentration of wealth in a few hands.
• Foreign domination of key sectors.

3. Evaluate the options

• A. Scarcity of goods and services: Not a typical outcome. Private firms generally try to supply more in order to earn profit.
• B. Higher cost of goods and services: This is a real criticism, since private owners seek profit. It is a plausible answer, but it is not the main demerit that the JAMB syllabus stresses.
• C. Creation of unemployment: This is the classic demerit. After privatisation, many workers were laid off as new owners "right-sized" the workforce (e.g., NITEL, Nigeria Airways, and the steel companies).
• D. Inefficient service delivery: This is actually the problem privatisation aims to solve, so it is a merit, not a demerit.

4. Answer My own working agrees with the key.

Correct answer: C. creation of unemployment

5. Exam tip Remember the pairing: Privatisation → Profit motive → Cost-cutting → Retrenchment (unemployment). When a question asks for a demerit of privatisation, think "job losses" first. If it asks for a merit, think "efficiency, less government burden, more revenue."