Public corporations and parastatals are typically established by

Analyze the question

The question asks how public corporations and parastatals are established. These are government-owned organizations, so we need to identify the legal or institutional source of their creation.

Explain the concept

A public corporation (also called a parastatal) is a business or service organization owned and controlled by the government. It exists to provide essential services or carry out economic activities in the public interest. Examples in Nigeria include:

• NNPC (Nigerian National Petroleum Company Limited)
• NEPA/PHCN (now successor power companies)
• Nigerian Ports Authority (NPA)
• Federal Road Safety Corps (FRSC)
• Nigerian Railway Corporation (NRC)

Because they are public bodies, they cannot just be set up by anyone. They are created through a law, such as an Act of the National Assembly (federal) or a Law of a State House of Assembly (state). Sometimes they are created by a decree (under military rule) or an executive order backed by statute. This law spells out the corporation's powers, functions, funding, and management structure.

Step-by-step solution

1. Option A, private individuals: Private individuals set up private companies, not public corporations. Wrong.
2. Option B, legislative acts and statutes: Public corporations are established by an Act of the legislature or a statute. Correct.
3. Option C, trade unions: Trade unions protect workers' interests and do not create government parastatals. Wrong.
4. Option D, international organizations: Bodies like the UN or ECOWAS may create their own agencies, but Nigerian public corporations are created by Nigerian law. Wrong.

Answer: B. Legislative acts and statutes

Exam tip: Remember "Public = Parliament's law." Anything public (owned by the government) is usually created by an Act, Law, or Decree, while anything private is created by individuals through registration (for example with the Corporate Affairs Commission, CAC).