The Senate has endorsed the proposed acquisition of Lafarge Africa Plc by Chinese investor Huaxin Pan-African Investment Company, ruling that the transaction should proceed provided it complies with all Nigerian laws and regulatory requirements.
Lawmakers also assured that the 16.19 per cent equity held by Nigerian public investors in Lafarge Africa would remain unaffected by the ownership transfer.
The resolution followed the adoption of a report by an ad hoc committee chaired by Senate Minority Leader Abba Moro, which investigated the proposed sale after concerns were raised about Lafarge’s ownership structure and Nigeria’s stake in the company.
According to the committee, the transaction is essentially a transfer of ownership between two foreign investors, as Lafarge’s majority shareholder is a foreign company selling its stake to Huaxin. It noted that Nigerian shareholders would retain their existing holdings.
The Senate directed regulatory agencies involved in approving the transaction to maintain strict oversight and ensure compliance with all applicable laws. Agencies including the Securities and Exchange Commission, Corporate Affairs Commission, Federal Competition and Consumer Protection Commission, Nigerian Investment Promotion Commission and Bureau of Public Enterprises reportedly found the transaction to be compliant with existing regulations.
The committee also said there was no immediate national security risk associated with the acquisition. It noted that Huaxin plans to inject fresh capital into Lafarge’s operations in Nigeria and across Africa, while Holcim’s continued involvement through its partnership with Huaxin is expected to strengthen corporate governance.
Lawmakers concluded that the investment could boost economic activity, create jobs and attract more foreign direct investment, while urging continued regulatory oversight of strategic national assets and responsible investment in the cement industry.
