Public corporations are funded by the

1. Analyze the question The question asks who funds public corporations. These are bodies set up by the government (by an Act or decree) to provide essential services or run commercial activities for the public benefit.

2. Explain the concept Public corporations (also called parastatals) are state-owned enterprises. Examples in Nigeria include NNPC Ltd, NEPA/PHCN (the successors in power), the Nigerian Ports Authority (NPA), the Federal Airports Authority of Nigeria (FAAN), and the Nigerian Railway Corporation (NRC).

Key features:

• They are established by law (an Act of the National Assembly or a state law).
• They are owned and controlled by the government.
• Their initial capital comes from government funds (government subventions, grants and appropriations).
• They may also earn revenue from the services they provide, and they can borrow, but government is the main source of funding.

3. Solution

• B. Civil society: These are NGOs and community groups. They do not fund public corporations.
• C. Citizens: Citizens pay taxes and fees to government, and use the services, but they do not fund the corporations directly. Their money reaches the corporations through government.
• D. Political appointees: These are officials who run government offices. They are not funders.
• A. Government: The government provides the capital, subventions and grants that set up and sustain public corporations. This is correct.

4. Answer The correct option is A. government.

5. Tip Remember: public corporation = public (government) ownership = government funding. In contrast, private companies are funded by shareholders and owners. If a question says "public corporation" and asks about funding, ownership or control, think "government" first.