Public corporations unlike private enterprises

Analyze the question The question asks what distinguishes public corporations from private enterprises. We need the feature that is characteristic of public corporations, not of private businesses.

Explain the concept Public corporations (e.g., NEPA/PHCN, NNPC, Nigerian Ports Authority, NITEL) are government-owned bodies set up by law (an Act or decree) to run services in the public interest. Their main aim is to serve the people, not to maximize profit. Private enterprises are owned by individuals or groups, and their main aim is profit.

Go through the options

• A. Curtail competition: Some public corporations hold monopolies, but this is not their defining purpose, and private firms (e.g., cartels) can also restrict competition. Not the best answer.
• B. Make profit: This is the main goal of private enterprises. Public corporations may earn a surplus, but profit is not their primary objective. This is the opposite of the distinction.
• C. Provide essential services: Public corporations are established mainly to supply essential services such as electricity, water, transport, and ports at affordable prices, even when this is not very profitable. This is the characteristic difference.
• D. Prevent private investors: They do not exist to bar private investors, and privatization and commercialization have in fact opened these sectors to them.

Answer Public corporations are primarily set up to provide essential services to the public, while private enterprises are driven by profit.

Tip Remember: Public = Service, Private = Profit. When a JAMB Government question contrasts the two, look for the option about public welfare or service delivery.