Senate demands transparency in Lafarge Africa sale to Chinese investors
The Nigerian Senate has called for transparency in the ongoing negotiations for the sale of Lafarge Africa Plc to Chinese investors.
In a resolution passed on Thursday, lawmakers urged the Bureau of Public Enterprises to ensure the divestment process safeguards national security and protects Nigeria’s economic sovereignty.
The motion, sponsored by Senator Salisu Afolabi (Ogun-Central), emphasized Lafarge Cement’s strategic importance to Nigeria’s economy, highlighting its role in job creation, infrastructure development, and industrial growth.
He emphasized that the sale of such a vital asset raised concerns about local ownership, national security, and fairness in the bidding process.
“The Senate notes that discussions are underway regarding the divestment of Lafarge Cement Plc, with reports indicating potential Chinese investors. This has sparked concerns over the possibility of foreign dominance in a key sector of the Nigerian economy,” the motion stated.
The Senate noted that Holcim AG, the majority shareholder, plans to sell its 83.8% stake in Lafarge Africa to Huaxin Cement Co., a Chinese cement manufacturer.
The $1 billion deal is set to be finalized in 2025, subject to regulatory approval.
“The cement manufacturing industry is vital to national security due to its role in infrastructure projects, including roads, bridges, housing, and public works,” the motion continued.
“Excessive foreign control in this sector could pose risks to Nigeria’s economic sovereignty and security interests.”
The motion also highlighted that several local investors had expressed interest in the deal but raised concerns about transparency and limited access to equitable shares.
Lawmakers also warned of potential long-term consequences, including capital flight, job losses, and regulatory challenges linked to foreign-dominated ownership in key industries.
However, not all senators supported the motion.
Some contended that Nigeria’s free-market economy allows any eligible investor to participate in transactions.
Senator Jimoh Ibrahim warned against using the Senate to block the federal government’s efforts to attract foreign investment.
He maintained that investors should be free to exit or divest from their holdings without restrictions.
Senator Sunday Karimi echoed this view, cautioning against any legislative action that could obstruct the sale.
The motion ultimately passed after Senate President Godswill Akpabio clarified that the resolution was not meant to halt the transaction but to ensure transparency.
