The Senate has raised concerns over the proposed divestment of Lafarge Africa Plc by its majority shareholder, Holcim AG, to Huaxin Cement Co., a Chinese cement producer.
Lawmakers called for safeguards to protect Nigeria’s economic sovereignty and national security interests.
The resolution, adopted on Thursday, directed the Bureau of Public Enterprises (BPE) to ensure that the transaction process adheres to transparent and competitive standards.
The Senate stressed the importance of protecting local participation and addressing potential national security implications.
The motion, sponsored by Senator Salisu Afolabi (Ogun-Central), revealed Lafarge’s critical role in Nigeria’s economy through job creation, infrastructure development, and industrial contribution.
The lawmakers pointed to Lafarge’s strategic relevance to the construction of roads, housing, and other public infrastructure.
Holcim AG is divesting its 83.8 percent stake in Lafarge Africa to Huaxin Cement under a $1 billion deal expected to close in 2025, subject to regulatory approvals.
The transaction has attracted attention from several Nigerian investors, but concerns over the process’s transparency and fairness have been raised.
Lawmakers warned that excessive foreign control of the cement industry could weaken Nigeria’s economic independence.
The Senate expressed concern about the potential impact on employment, capital retention, and regulatory oversight if the sector becomes dominated by foreign interests.
The resolution noted that the cement industry is classified as strategic due to its involvement in national infrastructure projects and its contribution to the country’s industrialization efforts.
Lawmakers explained that there is a need to balance foreign investment with national interest protection.
While some senators supported the motion, others cautioned against interfering with free-market principles. Senator Jimoh Ibrahim argued that the Senate must avoid obstructing foreign direct investment inflows.
Senator Sunday Karimi also advised against any action that could deter investors.
Senate President Godswill Akpabio clarified that the resolution does not prohibit the transaction but mandates transparency and the protection of Nigeria’s economic interest.
The Senate subsequently directed its Committees on Capital Market, Trade, and Investment to oversee the process and ensure compliance with the recommendations.
