The Nigerian Senate has approved the proposed acquisition of Lafarge Africa Plc by Chinese company, Hainan Huaxin Pan-African Investment Company Plc, assuring citizens that Nigerian investors’ interests will remain fully protected.
The Senate’s decision followed the adoption of a report by an ad hoc committee led by Senate Minority Leader, Senator Abba Moro, which investigated concerns surrounding the ownership structure and possible implications of the transaction.
The committee concluded that the deal does not pose an immediate national security threat and will not affect the 16.19 per cent equity stake held by Nigerian shareholders in Lafarge Africa.
Senate Says Lafarge Acquisition Poses No Threat to Nigerian Investors
Presenting its findings, the committee explained that the transaction represents a transfer of ownership between foreign investors rather than the sale of a wholly Nigerian-owned company.
According to the report, Lafarge Africa has historically been controlled by foreign investors, with the current majority owner, Holcim, transferring its stake to Huaxin.
The Senate stressed that the change in ownership structure would not reduce the rights, investments, or benefits of Nigerian shareholders.
It also directed relevant regulatory bodies, including the Securities and Exchange Commission (SEC), Corporate Affairs Commission (CAC), Federal Competition and Consumer Protection Commission (FCCPC), Nigerian Investment Promotion Commission (NIPC), and Bureau of Public Enterprises (BPE), to maintain strict oversight throughout the process.
The lawmakers insisted that all parties involved must comply with Nigerian laws and regulatory requirements before the transaction is concluded.
The committee noted that investigations by relevant agencies found no violation of existing regulations and no immediate security concerns linked to the acquisition.
It added that Huaxin’s planned investment into Lafarge’s operations could strengthen production capacity, support industrial expansion, and attract additional foreign direct investment into Nigeria.
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The Senate further dismissed concerns that the deal could create excessive foreign dominance in Nigeria’s cement industry, noting that Lafarge currently controls about 18 per cent of the domestic cement market and that the acquisition would not significantly affect competition.
The committee also revealed that assurances had been received regarding workforce stability, with existing employees expected to remain protected during the transition period.
According to the Senate, the transaction aligns with Nigeria’s policy of encouraging responsible foreign investment to drive economic growth, create jobs, and improve industrial development.
Following the presentation of the report, senators unanimously adopted the recommendations, giving legislative backing to the Lafarge Africa acquisition while maintaining that regulatory agencies must continue monitoring the process.