Senate Clears $1bn Acquisition of Lafarge Africa by Chinese Firm

​The Nigerian Senate has officially approved the acquisition of an 83 percent stake in Lafarge Africa Plc by the Chinese firm, Hainan Huaxin Pan-African Investment Company Plc, in a transaction valued at $1 billion.

​The resolution, reached during Thursday’s plenary, follows a rigorous seven-month review by an ad hoc committee chaired by Senate Minority Leader, Senator Abba Moro. The committee was originally constituted in December 2025 to address public and legislative concerns regarding the potential impact of the sale on Nigeria’s economic sovereignty and national security.

​Findings and Committee Recommendations

​In his presentation to the upper chamber, Senator Moro emphasized that the committee found no legal impediments to the deal. The report clarified that the acquisition represents a transfer of ownership between two foreign entities—the current parent company, Swiss-based Holcim AG, and the incoming Chinese investor.

ADVERTISEMENT

​Key takeaways from the committee’s report include:

• ​Compliance: The transaction is deemed to align with all statutory requirements and Nigeria’s broader goal of attracting Foreign Direct Investment (FDI).

• ​Market Impact: The Senate noted that Lafarge Africa holds approximately 18 percent of the local market share and that the transition does not significantly alter the existing competitive landscape.
• ​Investor Protection: The committee assured the public that the 16.19 percent stake held by Nigerian investors remains secure and will not be affected by the ownership change.

• ​Workforce Stability: The acquisition is expected to maintain stable employment for Nigerians, complying with directives previously issued by the Federal Competition and Consumer Protection Commission (FCCPC).

​Legislative Debate and Unanswered Questions

​Despite the final approval, the proceedings were marked by intense debate. Senator Abdul Ningi raised concerns regarding the company’s shareholding structure, specifically pointing out that the committee’s report failed to account for the ownership of the remaining 66 percent of equity in Lafarge Africa.

​Ningi argued that without full disclosure of the company’s ownership, lawmakers could not fully assess the implications of the sale. While Senator Osita Izunaso, Chairman of the Senate Committee on Capital Market, endorsed the findings, the question regarding the controlling interest of the outstanding shares remained unaddressed during the session.

​Path Forward

​The Senate has directed all relevant regulatory agencies to maintain strict oversight throughout the transition period to ensure full compliance with Nigerian laws. Furthermore, lawmakers urged the new owners to prioritize Corporate Social Responsibility (CSR) and strengthen commitments to the host communities where Lafarge operates, citing past shortcomings in these areas.