Telecommunications PLC (NITEL), Nigerian Union of Journalists (NUJ) Reasons for Government ownership of Public Corporations 1. Creation of Employment Opportunities: Government ownership of Public corporation helps in creating employment opportunities for the teaming unemployed persons in the society. 2. Economic Growth: This is ensured through Government ownership of some organizations 3. Capital: The capital requirement for the establishment of a public corporation is so large that it could not have been easy or even possible for private individuals to raise 4. Protection of the Country’s Sovereignty: State ownership of some public corporations is sometimes meant to protect the integrity and sovereignty of the country 5. To Prevent Exploitation: The aim of any private investor is to maximize profit but there are some social responsibilities in which the government owes to its people, if private enterprises are allowed to handle the provision of most of the essential goods and services, there would be high level of exploitation 6. Distribution of resources: Sometimes government ownership of public
corporations is to ensure equitable distribution of the country’s resources 7. Social Cost: The establishment of some industries may involve a social cost, thus ownership of such organizations becomes imperative 8. Prevention of competition: There is the need for government to prevent unhealthy competition in some very important industries. The government has the role and duty to ensure the success of such corporations in the interest of the public 9. Avoidance of Duplication: Private enterprises may be involved in the production of hundred types of the same goods; therefore, the state ownership helps to avoid unnecessary duplication 10. Nature of Goods and Services: The provision of some essential goods and services cannot be left in the private hands, otherwise there will be exploitation since a private investor’s objectives is to maximize profit
You've reached the end of your free preview.
Want to read all 14 pages?
- Spring '17