Senate Tells FG To Stop Sales Of Lafarge Cement To Chinese Firm, Gives Reason
The proposed sale of Lafarge Cement to a Chinese investor was urged to be promptly halted by the Senate
The request is now required to guarantee that the divestiture procedure protects national security, according to the House
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The cement company operates Mfamosing in Calabar, Cross River State; Ewekoro in Ogun State; and Ashaka in Gombe State
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The Senate called on the federal government to immediately stop the proposed sale of Lafarge Cement to a Chinese investor through the Bureau of Public Procurement.
According to the Senate, the call is required to guarantee that Nigeria's economic sovereignty and national security are protected during the divestment process.
In Nigeria, the cement company runs three plants: Ashaka in Gombe State, Mfamosing in Calabar, Cross River State, and Ewekoro in Ogun State, The Nation reported.
The Senate passed the resolution after considering and passing a motion presented by Senator Shuaib Afolabi Salisu (APC-Ogun Central) titled, "Urging the Federal Government to halt the sale of Lafarge Cement Plc to Chinese investors in the interest of National Security."
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In his lead debate, Senator Salisu emphasized the strategic significance of Lafarge Africa Plc to Nigeria's industrial and construction sectors, stating that it is not only another business but rather a vital component of the country's infrastructure development, which creates jobs and fosters economic expansion.
He told his colleagues that, subject to regulatory permission, Holcim AG, which owns 83.8% of Lafarge Africa Plc, plans to sell its shares to the Chinese cement maker Huaxin Cement Company for $1 billion. The sale is expected to be completed in 2025.
He claims that there are worries because the agreement may result in job losses, capital flight, and less regulatory control in an area that is essential to the growth of the country.
“We cannot afford to wake up one day and realise that our cement industry, one of the backbones of our economy, is entirely in foreign hands.
“Local investors have shown willingness to participate, yet they face unnecessary barriers. This is a matter of economic patriotism. This is about protecting Nigeria’s economic future.
“We must ensure that strategic assets like Lafarge Cement remain in the hands of those who have the country’s best interests at heart,” Salisu said:
Salisu’s motion reads in part:
“Aware that the cement manufacturing industry is a critical sector directly linked to national security due to its significance in infrastructure development, including construction of roads, bridges, housing, and other vital public works;
“Also aware that the dominance of foreign ownership in such a sensitive sector poses risks to Nigeria’s economic sovereignty and national security interests;
Senators in their contributions supported the motion and approved its prayers when they were put to a voice vote by the presiding officer in the Senate.
Akeem Iyanda said,
"What Nigeria need right now is enough competitors in the industry that will start a price war just like what we are seeing in the energy sector."
Cement company doubles profit
Legit.ng reported that for the fiscal year that concluded on December 31, 2024, Lafarge Africa Plc reported a profit after tax of N100.1 billion, which is a 96% increase over the N51.1 billion reported in 2023.
Revenue for the cement manufacturer also increased, rising 72% to N696.8 billion in 2024 from N405.5 billion the year before.
Despite ongoing macroeconomic difficulties, Lafarge Africa's success was fueled by increased sales volume and better pricing tactics, according to the company's audited financial results submitted on Thursday to the Nigeria Exchange.
