Abstrack

In recent time, government expenditure on public and other ad-hoc

establishments has been on the increase. This can be attributed to the resolve of

govenunent for rapid and accelerated development including the welfare of the

citizen hence, the underlying objectives in the establishment of public enterprises

and corporations.

Thus, the principle of limited government restricts the government only to

its traditional statuto1y role of maintaining Law and order plus the provision of

basic Infrastructures. However, the evolution of monopolistic capitalism and the

attendant market failme (recess) in the 1930's led to the total adoption of an

economic policy prescribed by Keynes, which is othe1wise called the Keynesian

theory o n economy. These prescriptions helped to get the world economy out of

the depression. The prescriptions had formed the underlying factor of public

enterprises and above all government intervention and participation in economic

activities. There have also been some controversies over the establishment of some

of these public Institutions, which led to series of political cum-economical and

academic debate. These debates attempt to rationalize the establishment of some

of these Institutions. While in some instance, there have been calls for their

dissolution.