The Nigerian Senate Committee on Capital Market has announced plans to summon Lafarge Africa Plc for questioning regarding its proposed $1 billion sale to Chinese cement manufacturer Huaxin Cement Co. The committee aims to ensure shareholder rights are protected and examine the transparency of increasing foreign dominance in Nigeria’s cement industry.
Lafarge Africa Plc, Nigeria’s third-largest cement manufacturer by market capitalisation (₦1.19 trillion), operates as a subsidiary of global building materials giant Holcim AG.
The company maintains significant cement manufacturing operations across Nigeria, with factories in the South-west (Ewekoro and Sagamu in Ogun State), North-east (Ashaka in Gombe State), and South-east (Mfamosing, Cross Rivers State), along with Ready-Mix operations in Lagos, Abuja, and Port Harcourt. Lafarge Africa currently boasts an installed cement production capacity of 10.5 metric tonnes per annum.
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The Nigerian cement industry is dominated by Dangote Cement (market cap: ₦7.24 trillion) and BUA Cement (market cap: ₦2.55 trillion), with Lafarge Africa holding the third position.
Recent Developments
During an interactive session at the National Assembly complex in Abuja on Wednesday, Senator Osita Izunaso, Chairperson of the Senate Committee on Capital Market, disclosed plans to investigate the proposed sale. The session included officials from the Securities and Exchange Commission (SEC), the Bureau of Public Enterprises (BPE), and the Federal Competition and Consumer Protection Commission (FCCPC).
“We are going to invite Lafarge and hear from them. Then, come back to the Corporate Affairs Commission (CAC) to look at the share structure. We will take it from there,” stated Izunaso, who represents Imo West Senatorial District.
Reports indicate that Holcim AG is finalising arrangements to divest its controlling 83.8 percent stake in Lafarge Africa to China’s Huaxin Cement Co. in a transaction valued at approximately $1 billion. The deal, still pending regulatory approval, is expected to close in 2025.
The proposed sale first gained Senate attention in March when Senator Shuaib Salisu of Ogun Central sponsored a motion highlighting concerns about limited transparency in the divestment process and restricted opportunities for Nigerian investors to participate in the transaction.
Senate debate on March 28 revealed divided opinions among lawmakers. While some cautioned against obstructing legitimate private sector transactions and foreign investment, the majority emphasised the necessity for government oversight. Following this debate, the Senate directed the BPE and SEC to ensure the sale aligns with Nigeria’s economic and national security interests.
SEC Director General Emmanuel Agama, represented by Director of Securities and Investment Services Abdulkabir Abbas, clarified during Wednesday’s session that the commission has not received any formal application regarding the sale.
He noted that recent internal restructuring merely transferred a 27.77 percent equity stake from Associated International Cement Limited to another Holcim-owned entity, Davis Peak Holdings Limited, without changing ultimate beneficial ownership.
Similarly, BPE Director of Post-Transaction Satura Bello emphasised that the divestment concerns only Holcim’s majority stake, not the 16.19 percent of shares held by Nigerian investors, whose interests remain intact.
Senator Izunaso indicated that if necessary, the committee would call for a public hearing on the matter, but expressed hope that the issues could be “resolved amicably” following discussions with Lafarge Africa’s management and examination of detailed information from the Corporate Affairs Commission on the company’s ownership structure.
