Public corporation is a semi-independent statutory body established by

Step 1: Analyze the question The question asks how a public corporation is established. The key word is "statutory," which means created by a law or statute.

Step 2: Explain the concept A public corporation is a business organization owned and controlled by the government and set up to provide essential goods and services to the public. Examples in Nigeria include the NNPC, NEPA (now split into successor companies), the Nigerian Ports Authority (NPA), and the Nigerian Television Authority (NTA).

Key features:

• It is created by a specific law, such as an Act of the National Assembly (parliament), or a decree during military rule.
• The law sets out its objectives, powers, structure, and how it is funded and supervised.
• It has a separate legal identity. It can sue and be sued, own property, and sign contracts.
• It operates with some independence from the day-to-day running of government ministries, which is why it is called "semi-independent."

Step 3: Evaluate the options

• A. An act of parliament: Correct. "Statutory body" means a body created by a statute, and a statute is an Act of parliament.
• B. A civil service commission: Incorrect. This body handles recruitment, promotion, and discipline of civil servants. It does not create corporations.
• C. A private sector initiative: Incorrect. Private initiatives produce private companies, which are registered under company law. Public corporations are government-owned.
• D. Free zones board: Incorrect. A free zones authority manages special economic areas for trade and does not establish public corporations.

Step 4: Answer A public corporation is established by an act of parliament, which is option A.

Step 5: Exam tip Link the words: statutory = statute = Act of parliament. If a question mentions "statutory body" or "established by law," the answer is almost always an Act or decree. Also remember that the Act is what makes a public corporation different from a private company, which is registered under the Companies and Allied Matters Act (CAMA).