Why do public enterprises exist in Nigeria?

Public enterprises, like in other countries, were established with good intentions for the welfare of the people. The overriding reasons for creating public enterprises in Nigeria were to:

  • Make up for a shortage of local capital for expansion and technological improvements;
  • Ensure government control of “commanding heights” to prevent elites from prospering at the expense of Nigerians;
  • Correct the market failure resulting from public monopoly and misallocation of public resources;
  • Facilitate regional development through government-planned and controlled location of public enterprises and their branches;
  • Create jobs; and,
  • Ensure adequate provision of social services.