Senate okays sale of Lafarge Cement to Chinese firm

The Senate has endorsed the sale of Lafarge Cement Plc to Hainan Huaxin Pan-African Investment Company Plc, recommending that the transaction process should be allowed to sail through.

But it also recommended that, in finalising the transaction, the parties must comply with due process and “all Nigerian extant laws on the subject.”

The sale of the firm was the subject of a probe conducted by the Senate Committee on Capital Market in December 2025, after questions were raised over the ownership status of Lafarge and Nigeria’s investment stake in the firm.

An ad-hoc committee chaired by the Senate Minority Leader, Abba Moro, later took over the investigation to further review the process.

The report of the committee, which the Senate approved on Thursday, fully backed the sale of the cement firm so long as it complied with Nigeria’s extant laws.

“That the Senate do urge and encourage all the regulatory authorities involved in this transaction to continue to carry out their respective regulatory oversight to monitor compliance in line with our extant laws and regulations”, the report stated.

The committee noted that the uproar surrounding the sale of Lafarge stemmed from a misconception over the ownership of the firm, especially when it was thought to be wholly owned by Nigeria.

“That there is a misconception about the ownership of Lafarge, as the current development is basically a transfer from one foreign ownership to another, being that Lafarge itself, is a foreign firm that is selling its ownership to Huaxin.

“As such, this transaction will not affect the investment of Nigerian public investors in the company”, it said.

“That the integration of foreign investment, through this transaction, is viewed as an economic necessity and strategic initiative that aligns with national development goals.”

The committee also found that relevant regulatory authorities, including the Securities and Exchange Commission (SEC), the Corporate Affairs Commission (CAC), the Federal Competition and Consumer Protection Commission (FCCPC), the Nigerian Investments Promotion Council (NIPC), and the Bureau of Public Enterprises (BPE), had reviewed aspects of the transaction for compliance with applicable laws and regulations.

“And based on available information, the Committee found no immediate national security risk associated with the transaction and noted the acquiring entity’s intention to invest additional capital in Lafarge’s operations in Nigeria and across Africa”, the report added.

The committee further reported that the 16.19 per cent shares owned by Nigerians in the firm remained intact despite the sale.

“That the concern surrounding foreign ownership within the cement industry should not be a source of concern as Lafarge at the moment, currently holds approximately 18% of the market share.

“That there is an assurance of stable employment for Nigerians in the transition period in line with directives, issued by the Federal Competition and Consumer Protection Commission (FCCPC), which has also been complied with, regarding the workforce of Lafarge”, it said.

According to the findings of the committee, the transaction did not introduce a new scenario of foreign majority ownership, but rather perpetuated an existing situation that has been part of the market landscape, with Holcim’s continued stake in the arrangement, through its partnership with Huaxin, bringing additional layers of corporate governance recognised on a global scale.

The committee also observed that the transaction would generate more Foreign Direct Investment (FDI) into Nigeria in line with the country’s business policy framework.

The report gave more details: “That the transaction is fundamentally in harmony with Nigeria’s long standing policy framework, which has been strategically designed to attract Foreign Direct Investment (FDI), aimed at bolstering industrial growth within the country.

“That the unveiled Huaxin’s strategic investment plans on the horizon, which may be perceived to be too ambitious, is poised toward unlocking exciting economic prospects, creating jobs and enhancing economic value in Nigeria.

“That the 16.19% stake in the company that is currently being held by the Nigerian public investors, will remain completely unaffected by the proposed transaction. This means that the ownership and rights associated with shareholding will stay unchanged and secured, ensuring that these investors continue to retain their interest in the company without any alteration or disruption, due to the ongoing transaction. This presupposes that their investments remain intact and protected throughout this process.

“That the Senate should support policies that promote responsible investment in Nigeria’s cement sector, while maintaining oversight of strategic assets and ensuring a conducive environment for legitimate foreign direct investment.”

The report was unanimously passed by senators on Thursday.