Senate Blocks Sale of Lafarge to Chinese Investors

The legislators made the move on national security and economic sovereignty grounds.

“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.

It further observed that Holcim AG, the majority shareholder, is planning to offload its 83.8 per cent stake in Lafarge Africa to Huaxin Cement Co., a Chinese cement manufacturer.

The $1 billion deal is expected to be finalized in 2025, pending 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.”

Some of the senators who backed the call included Mr Shuaib Afolabi Salisu, who said, “We cannot afford to wake up one day and realise that our cement industry, one of the backbones of our economy, is entirely in foreign hands. We must ensure that strategic assets like Lafarge Africa remain in the hands of those who have the country’s best interests at heart.”

On his part, Mr Olamilekan Adeola said, “The company is about to be divested and the transaction has been shrouded in secrecy. What the motion is simply asking for is that we want this transaction to be as transparent as possible. By the time the eventual sale of this company is done, we will be fully satisfied that Nigeria’s economy will be protected.”

Concerns have reportedly been raised that the deal could lead to capital flight, job losses and reduced regulatory oversight over a sector vital to national development.

Mr Jimoh Ibrahim cautioned against using the Senate to obstruct the federal government’s efforts to attract foreign investment.

He argued that investors should not feel restricted when they decide to exit or divest from their holdings.

His sentiment was echoed by Mr Sunday Karimi, advising against any legislative action that might hinder the sale.