The Nigerian Senate has given its approval for the sale of Lafarge Africa Plc, the country's third-largest cement producer, to Hainan Huaxin Pan-African Investment Company Plc, a Chinese entity. This decision, reached on Thursday, 2026-07-09, came despite reservations expressed by some lawmakers regarding the transparency of the transaction.
Lawmakers voiced concerns that the identities of major shareholders in the proposed ownership structure were not fully disclosed. The Senate ad hoc committee, which reviewed the transaction, noted that Lafarge Africa intends to sell its 18 per cent market share to Huaxin, with Nigerian public investors currently holding a combined 16.19 per cent stake in the company.
Lawmakers Raise Transparency and Community Concerns
Senator Abdul Ningi of Bauchi Central, a member of the Peoples Democratic Party (PDP), questioned the transaction's transparency, criticising the committee's report for not detailing the complete shareholding structure. He stated, “I would have imagined that the report of the committee should specifically give us shareholding. Sixteen per cent Nigerians, 18 per cent Lafarge, what about the remaining? Who owns that? So, we need to understand where we are coming from. It is when you know who owns the rest that you’ll understand whether Nigerians are benefiting from these sales.”
Similarly, Senator Danjuma Goje, representing Gombe Central and a former governor of Gombe State, expressed dissatisfaction with Lafarge’s operations in Gombe State, arguing that the company had not adequately benefited its host communities. He urged the committee to recommend stricter conditions to ensure the company complies with regulatory requirements and existing agreements.
Senator Yahaya Abdullahi of Kebbi North Senatorial District also called for stronger safeguards to ensure that Nigerians, particularly residents of host communities, derive greater benefits from the transaction. However, Deputy Senate President Barau Jibrin, who presided over the session, maintained that the chamber could only act on the committee’s recommendations. He added that additional details could be obtained through the Freedom of Information (FOI) Act, before the Senate subsequently approved the transaction via a voice vote.
Transaction Details and Background
Lafarge Africa, a significant player in Nigeria’s cement industry, is a subsidiary of Holcim AG, a multinational building materials company listed on the Swiss stock exchange. Lafarge Africa itself is listed on the Nigerian Exchange (NGX).
Holcim AG is reportedly finalising plans to sell its 83.8 per cent stake in Lafarge Africa to China’s Huaxin Cement Co. in a deal valued at about $1 billion, pending regulatory approvals. The proposed sale was first debated on the floor of the Nigerian Senate in March 2025, following a motion sponsored by Senator Shuaib Salisu of Ogun Central, which highlighted issues such as a lack of transparency and limited access for Nigerian investors.
The Senate had previously directed the Bureau of Public Enterprises (BPE) and the Securities and Exchange Commission (SEC) to ensure the sale aligns with Nigeria’s economic and national security interests. It also mandated its Capital Market Committee to liaise with relevant agencies for scrutiny. Despite the Capital Market Committee recommending approval, some senators remained dissatisfied, leading to the establishment of an ad hoc committee chaired by Mr. Moro for further review.
Lafarge Africa operates numerous factories across Nigeria, with cement operations in the South-west (Ewekoro and Sagamu in Ogun State), North-east (Ashaka, in Gombe State), and South-south (Mfamosing, Cross Rivers State). It also has Ready-Mix operations in Lagos, Abuja, and Port Harcourt, boasting a current installed cement production capacity of 10.5 metric tonnes per annum.
