Public corporations were established by an act of

Answer Details

Public corporations are established by an act of parliament. The legislature passes a specific statute (an enabling act) that creates the corporation, defines its objectives, powers, structure, and the terms under which it operates. This legal foundation gives the corporation its authority and legitimacy as a public enterprise.

For example, in Nigeria, corporations like the Nigerian National Petroleum Corporation, the Nigeria Railway Corporation, and the Nigerian Ports Authority were each established through specific acts of the National Assembly (or its predecessors). The enabling act typically specifies the corporation's functions, composition of its governing board, sources of funding, and accountability mechanisms.

A memorandum of understanding is a type of agreement between parties but does not have the legal force to create a statutory body. The constitution establishes the fundamental framework of government but does not individually create public corporations. An executive order is an administrative directive from the head of the executive branch and is not the standard legal instrument for establishing public corporations in Nigeria's legal framework.