By Kingsley Benson
The Senate has approved the proposed acquisition of Lafarge Africa Plc by Chinese firm Huaxin Pan-African Investment Company, ruling that the transaction can proceed provided all regulatory requirements and Nigerian laws are fully observed.
The upper chamber also assured Nigerian investors that their 16.19 percent equity stake in the cement company would remain protected despite the change in ownership structure.
The resolution followed the adoption of the report of an ad hoc committee chaired by the Senate Minority Leader, Senator Abba Moro, which reviewed concerns surrounding the proposed acquisition, including issues relating to ownership, national interest and the position of Nigerian shareholders.
The investigation, initially commenced in December 2025 by the Senate Committee on Capital Market, was later transferred to the Moro-led committee for a broader assessment of the transaction.
Presenting the committee’s findings, lawmakers said the acquisition was primarily a transfer of ownership between foreign investors rather than a takeover of a wholly Nigerian-owned company.
According to the report, Lafarge Africa’s majority shareholder is a foreign entity seeking to transfer its interest to Huaxin, meaning the transaction would not alter the ownership rights of Nigerian minority shareholders.
“The transaction is essentially a transfer of ownership from one foreign investor to another,” the committee stated, adding that the interests of Nigerian shareholders would remain unaffected.
The Senate directed all relevant regulatory agencies involved in the approval process to continue monitoring compliance with existing laws and ensure that the transaction aligns with Nigeria’s investment regulations.
The committee noted that major regulatory institutions, including the Securities and Exchange Commission (SEC), Corporate Affairs Commission (CAC), Federal Competition and Consumer Protection Commission (FCCPC), Nigerian Investment Promotion Commission (NIPC) and the Bureau of Public Enterprises (BPE), had reviewed aspects of the acquisition and found it consistent with applicable regulations.
The lawmakers also said available evidence showed no immediate national security concerns associated with the proposed deal.
Beyond ownership considerations, the committee viewed the acquisition as an opportunity to attract foreign direct investment, strengthen Nigeria’s industrial sector and support economic growth.
The acquiring company, according to the report, has indicated plans to inject additional capital into Lafarge’s operations in Nigeria and other African markets, a move expected to support expansion, improve competitiveness and create employment opportunities.
The Senate dismissed concerns that the acquisition could create a new pattern of foreign dominance in Nigeria’s cement sector, noting that Lafarge already operates within an industry where foreign participation is established.
The report stated that Lafarge currently controls about 18 percent of Nigeria’s cement market and that the transaction would maintain, rather than introduce, foreign majority ownership in the sector.
The committee further disclosed that assurances had been provided regarding the protection of workers during the transition period, in line with directives issued by the FCCPC.
Worker protection has remained a key consideration in major corporate acquisitions, with regulators increasingly requiring acquiring companies to maintain employment stability and protect stakeholder interests.
The committee also highlighted the continued involvement of Holcim through its partnership with Huaxin, noting that the arrangement would support corporate governance standards consistent with international practices.
With Nigeria seeking increased capital inflows to support industrial expansion, the Senate said responsible foreign investment remains critical to strengthening strategic sectors such as cement manufacturing.
The lawmakers concluded that Huaxin’s investment plans could stimulate economic activities, deepen foreign direct investment and contribute to job creation.
However, they emphasised the need for continued regulatory oversight to ensure that strategic national assets are protected while maintaining an investment-friendly environment.
The approval of the Lafarge acquisition marks another major foreign investment decision in Nigeria’s industrial sector, coming at a time when policymakers are balancing the need for external capital with concerns around local participation, economic security and long-term national interests.
