• Upper chamber finds no national security risk, says 16.19% public shareholding remains intact
• Insists transaction must comply with Nigerian laws
Sunday Aborisade in Abuja
Senate on Thursday endorsed the proposed acquisition of Lafarge Africa Plc by Chinese firm, Hainan Huaxin Pan-African Investment Company Plc, declaring that the transaction poses no immediate national security threat and will not affect the 16.19 per cent equity held by Nigerian investors.
The approval followed the adoption of the report of an ad hoc committee chaired by Senate Minority Leader, Senator Abba Moro, which investigated the controversial transaction after concerns were raised over the ownership structure of Lafarge and the implications of the proposed sale.
While backing the acquisition, Senate insisted that all parties involved must strictly comply with due process and existing Nigerian laws before the conclusion of the transaction.
It also urged regulatory agencies, including Securities and Exchange Commission (SEC), Corporate Affairs Commission (CAC), Federal Competition and Consumer Protection Commission (FCCPC), Nigerian Investment Promotion Commission (NIPC) and Bureau of Public Enterprises (BPE), to sustain rigorous oversight to ensure full compliance with statutory regulations.
Senate said findings from its investigation showed that much of the public controversy surrounding the deal stemmed from a misconception that Lafarge Africa was wholly Nigerian-owned.
According to the committee, the transaction merely represents the transfer of ownership from one foreign investor to another, as Lafarge itself is controlled by foreign interests and is divesting its stake to Huaxin.
It stressed that the change in majority ownership would not diminish or alter the rights and investments of Nigerian shareholders.
The report stated that the 16.19 per cent stake owned by Nigerian public investors would remain completely intact throughout the transaction, assuring shareholders that their ownership interests and associated rights would not be affected.
The committee further disclosed that all relevant regulatory agencies had examined various aspects of the proposed acquisition and found no evidence of any breach of Nigeria’s legal or regulatory framework.
It stated that there was no immediate national security concern arising from the deal and highlighted Huaxin’s commitment to inject fresh capital into Lafarge’s operations in Nigeria and across Africa.
According to the senate, the planned investment is expected to strengthen the company’s operations, stimulate industrial growth, and support Nigeria’s drive to attract more foreign direct investment.
The committee added that concerns over foreign ownership in the cement industry were overstated, stating that Lafarge currently controls about 18 per cent of the domestic cement market and the acquisition would not significantly alter the industry’s competitive structure.
It also cited assurances from FCCPC that the acquiring company would maintain workforce stability during the transition, thereby protecting existing jobs.
The report observed that the transaction did not introduce a new pattern of foreign dominance in Nigeria’s cement industry but rather sustained an ownership structure that had existed for years under Holcim’s control.
It added that Holcim’s continued involvement through its partnership with Huaxin would strengthen corporate governance standards in line with global best practices.
The committee described the acquisition as consistent with Nigeria’s long-standing policy of encouraging responsible foreign direct investment to stimulate industrial expansion, create employment, and enhance economic value.
It recommended that Senate continue to support policies that promote legitimate investment in the cement sector while ensuring effective regulatory oversight of strategic national assets.
Following the presentation of the report, senators unanimously adopted its recommendations, effectively giving legislative backing to the controversial transaction.