Concerns Raised Over Lafarge Africa’s Sale to Chinese Company
On Thursday, several senators voiced their apprehensions regarding the proposed sale of Lafarge Africa, Nigeria’s third-largest cement producer, to Hainan Huaxin Pan-African Investment Company, a Chinese firm.
Legislators expressed worries about the ownership transition, noting that the identities of key shareholders in the new ownership structure remain undisclosed. A report from the Senate Select Committee that examined the deal revealed that Lafarge Africa plans to sell an 18% market share to Huaxin, while Nigerian retail investors currently hold a combined 16.19% stake in the company.
During the plenary session, Committee Chairman Abba Moro presented the report and recommended that the transaction proceed, emphasizing the necessity for all relevant regulatory authorities to monitor adherence to Nigerian laws and guidelines.
However, the report fell short of detailing the rest of the shareholding distribution, both under current circumstances and following the completion of the proposed acquisition. Senators who opposed the deal insisted that any transaction involving a major Nigerian cement producer should maintain a standard of greater transparency, including full disclosure of the company’s ownership.
Senator Abdul Ningi, representing Bauchi Central, was among the first to question the sale, arguing that the lack of transparency was concerning. Ningi, from the Peoples Democratic Party (PDP), criticized the committee for failing to present a complete overview of the company’s shareholding. He remarked on the importance of understanding how the remaining shares are distributed, asserting that knowing the full ownership structure is vital for gauging potential benefits for Nigerian stakeholders.
Senator Danjuma Goje, representing Gombe Central, echoed these concerns, highlighting the inadequate benefits that Lafarge provides to communities in Gombe state. As a former governor, he urged the committee to impose stricter conditions, ensuring the company complies with regulatory obligations and existing agreements that directly impact host communities.
Senator Yahaya Abdullahi, from Kebbi North, called for enhanced protections to guarantee that Nigerians, and particularly residents of affected communities, gain additional benefits from the transaction. Senate Vice President Barau Jibrin, who led the session, noted that Parliament’s actions were limited to the recommendations in the committee’s report. He added that anyone seeking more details could utilize the Freedom of Information Act (FOI) to obtain the necessary information.
The Senate subsequently put the committee’s recommendation to a voice vote, which was supported by a majority of senators, culminating in the approval of the deal. Lafarge Africa serves as a significant player in Nigeria’s cement industry and is a subsidiary of Holcim AG, a multinational building materials company traded on the Swiss Stock Exchange. The proposed sale aims to transfer an 83.8% stake in Lafarge Africa to Huaxin Cement for approximately $1 billion, pending regulatory endorsement.
This sale initiative was first discussed in the Nigerian Senate in March 2025, fueled by a motion from Senator Shuaib Salisu of Ogun Central, highlighting issues of transparency in the sale process and limited involvement for Nigerian investors. The debate revealed a split among senators, where some cautioned against meddling in legitimate private sector transactions and foreign investment while many emphasized the critical need for regulatory oversight.
The Senate ultimately directed the Bureau of Public Enterprises (BPE) and the Securities and Exchange Commission (SEC) to ensure that the sale aligns with Nigeria’s economic and national security interests, further mandating the Capital Markets Commission to collaborate with relevant agencies for due diligence. Despite a recommendation for approval from the Capital Markets Committee, dissatisfaction lingered among some senators, prompting the establishment of a special committee led by Minority Leader Moro for additional review.
Lafarge Africa operates multiple factories across Nigeria, with cement production facilities in the South West (Ewekoro and Sagamu in Ogun State), the North East (Ashaka in Gombe State), and the South South (Mfamosin in Cross Rivers State). Additionally, the company has ready-mix operations in major cities such as Lagos, Abuja, and Port Harcourt, boasting an installed capacity of 10.5 million tonnes of cement per year.
