The Senate has called for transparency in the ongoing negotiations involving the sale of Lafarge Cement Plc to Chinese investors.
In a resolution passed on Thursday, lawmakers urged the Bureau of Public Enterprises (BPE) to ensure that the divestment process upholds national security and protects Nigeria’s economic sovereignty, according to BusinessDay.
The motion, sponsored by Senator Salisu Afolabi (Ogun-Central), highlighted Lafarge Cement’s strategic importance, particularly its role in job creation, infrastructure development, and industrial growth in Nigeria.
He stressed that selling off such a critical asset raised concerns about local ownership, national security, and fair participation in the bidding process.
“The Senate notes that discussions are underway regarding the divestment of Lafarge Cement Plc, with reports indicating potential Chinese investors. This has sparked concerns over the possibility of foreign dominance in a key sector of the Nigerian economy,” the motion stated.
It further observed that Holcim AG, the majority shareholder, is planning to offload its 83.8 per cent stake in Lafarge Africa to Huaxin Cement Co., a Chinese cement manufacturer.
The $1 billion deal is expected to be finalised in 2025, pending regulatory approval.
“The cement manufacturing industry is vital to national security due to its role in infrastructure projects, including roads, bridges, housing, and public works,” the motion continued.
“Excessive foreign control in this sector could pose risks to Nigeria’s economic sovereignty and security interests.”
The motion also pointed out that several local investors had shown interest in the deal but raised concerns about transparency and limited access to equitable shares.
Lawmakers further warned about possible long-term consequences, such as capital flight, job losses, and regulatory challenges associated with foreign-dominated ownership in critical industries.
However, not all senators were in favour of the motion.
Some argued that Nigeria operates a free-market economy, where any investor who meets the necessary criteria should be allowed to participate in transactions.
Senator Jimoh Ibrahim cautioned against using the Senate to obstruct the federal government’s efforts to attract foreign investment. He argued that investors should not feel restricted when they decide to exit or divest from their holdings.
Senator Sunday Karimi echoed this sentiment, advising against any legislative action that might hinder the sale.
The motion ultimately passed after Senate President Godswill Akpabio clarified that the resolution was not aimed at stopping the transaction but ensuring transparency.
Following the resolution, the Senate directed its Committees on Capital Market, Trade, and Investment to oversee the deal and ensure compliance with its recommendations.
