Senators raise concerns over Lafarge sale to Chinese firm

Some senators on Thursday showed worry about the sale of Lafarge Africa Plc, Nigeria’s third-largest cement maker, to a Chinese company.

The lawmakers were not happy about the ownership change to Hainan Huaxin Pan-African Investment Company Plc. They pointed out that the details of major shareholders in the new ownership structure were not fully shared.

According to the Senate ad hoc committee that looked into the deal, Lafarge Africa plans to sell its 18 percent market share to Huaxin. Meanwhile, Nigerian public investors hold a combined 16.19 percent stake in the company.

The committee chairman, Abba Moro, shared the report during the plenary. He recommended that the sale proceed and that all appropriate regulatory bodies keep an eye on compliance with Nigerian laws.

But the report did not share details about the rest of the shareholding structure, whether under the current setup or after the acquisition is completed.

Some senators against the sale said that any deal involving one of Nigeria’s key cement producers should have more transparency. They want full disclosure of the company’s ownership.

Senator Abdul Ningi, who represents Bauchi Central, was the first to raise questions about the sale. He called the deal insufficiently transparent. Mr Ningi, a member of the Peoples Democratic Party (PDP), criticized the committee’s report for not revealing the full shareholding structure.

“I would have imagined that the report of the committee should specifically give us shareholding. Sixteen percent Nigerians, 18 percent Lafarge, what about the remaining? Who owns that? So, we need to understand where we are coming from. It is when you know who owns the rest that you’ll understand whether Nigerians are benefiting from these sales,” he said.

Senator Danjuma Goje, representing Gombe Central, also raised worries about Lafarge’s operations in Gombe State. He said the company has not helped its host communities enough. Mr Goje, a former governor of Gombe State, asked the committee to suggest stricter conditions for the company to follow regulatory requirements and existing agreements with host communities.

Senator Yahaya Abdullahi from Kebbi North also called for stronger protections to make sure that Nigerians, especially those living in host communities, get more benefits from the deal.

Deputy Senate President Barau Jibrin led the session. He said the chamber could only act on the recommendations from the committee’s report. Mr Jibrin, who represents Kano North, added that anyone wanting more details about the sale could ask for them through the Freedom of Information (FOI) Act.

“Anybody can write an FOI to the appropriate body to ask whatever information they wanted to ask,” he stated. After that, Mr Jibrin put the committee’s recommendations to a voice vote. Most senators supported them, and the Senate approved the deal.

Lafarge Africa is a major player in Nigeria’s cement market. It is a subsidiary of Holcim AG, a multinational company listed on the Swiss stock exchange. Lafarge Africa is also listed on the Nigerian Exchange (NGX).

Holcim AG is reportedly wrapping up plans to sell its 83.8 percent stake in Lafarge Africa to China’s Huaxin Cement Co. The deal is valued at around $1 billion, pending regulatory approvals.

The Senate first discussed the proposed sale in March 2025. Senator Shuaib Salisu, representing Ogun Central, sponsored a motion on issues like lack of transparency in the sale process and limited access for Nigerian investors.

During the debate, senators had mixed opinions. Some warned against interfering in legitimate private-sector deals and foreign investments. However, most emphasized the need for regulatory oversight.

The Senate then instructed the Bureau of Public Enterprises (BPE) and Securities and Exchange Commission (SEC) to ensure the sale is in line with Nigeria’s economic and national security interests. They also told the Capital Market Committee to work with all relevant agencies for proper review.

After the Capital Market Committee submitted its report suggesting approval, some senators were still unhappy. This led the Senate to form an ad hoc committee led by Mr Moro, the Minority Leader, for further review.

Lafarge Africa has many factories in Nigeria. It operates in the South-west (Ewekoro and Sagamu in Ogun State), North-east (Ashaka in Gombe State), and South-south (Mfamosing in Cross Rivers State). It also has Ready-Mix operations in Lagos, Abuja, and Port Harcourt. Lafarge Africa currently has a cement production capacity of 10.5 metric tonnes per year.