The Nigerian Senate has initiated a debate concerning the proposed sale of Lafarge Africa Plc, the nation’s third-largest cement manufacturer, to China’s Huaxin Cement Co.
This development follows Holcim AG’s decision to divest its 83.8% stake in Lafarge Africa as part of a $1 billion deal expected to conclude in 2025, pending regulatory approvals.
During the plenary session on Thursday, Senator Shuaib Salisu (APC, Ogun Central) raised a motion highlighting concerns over foreign dominance in Nigeria’s cement industry.
He emphasized that Lafarge Africa is not merely a business entity but a pivotal contributor to the country’s infrastructure development, providing employment and fostering economic growth.
Salisu expressed apprehension that the transaction could lead to capital flight, job losses, and diminished regulatory oversight in this critical sector.
In response to these concerns, the Senate has directed the Bureau of Public Enterprises (BPE) and the Securities and Exchange Commission (SEC) to oversee the sale process and ensure it aligns with national security and economic interests.
Additionally, the Senate’s Committee on Capital Market has been tasked with collaborating with relevant government agencies to guarantee transparency throughout the transaction.
Senator Salisu underscored the importance of safeguarding Nigeria’s strategic assets and advocated for policies that promote local investment in vital industries.
He noted that while Nigerian investors have shown interest in acquiring Lafarge, they have encountered challenges in participating.
The Senate’s intervention aims to ensure that the divestment process prioritizes national security and economic sovereignty.
