Which of these is a major challenge of public corporations in Nigeria?

Step 1: Analyze the question The question asks for a major challenge facing public corporations in Nigeria. Public corporations are government-owned enterprises such as NNPC, NEPA/PHCN, Nigerian Railway Corporation, and Nigeria Airways (now defunct).

Step 2: Explain the concept Public corporations are set up by an Act of the National Assembly or a decree to provide essential services and run commercial activities. They are meant to operate with some autonomy. In practice, their biggest problems include:

• Political interference: government officials and politicians influence appointments, contracts, and decisions, often ignoring professional and commercial considerations.
• Mismanagement and corruption
• Inadequate funding
• Overstaffing (not shortage) and inefficiency
• Poor maintenance of facilities

Step 3: Evaluate each option

• A. Political interference: This is the classic and most widely cited challenge. Board members and managers are often appointed for political reasons rather than competence, and government directives override sound business decisions. ✔
• B. Political instability: This affects the whole country, not public corporations specifically, and it is not a standard textbook challenge for them.
• C. Shortage of staff: Public corporations typically suffer from overstaffing or poorly skilled staff, not a shortage.
• D. Industrial dispute: Strikes occur, but they are a consequence of deeper problems such as poor management and funding. They are not the primary challenge.

Step 4: Answer The correct option is A. Political interference.

Tip: For Government questions on public corporations, remember the key problems with the mnemonic "PIM-F": Political interference, Inefficiency, Mismanagement/corruption, Funding problems. When "political interference" appears in the options, it is usually the answer.