The Nigerian Senate has ordered the Bureau of Public Procurement (BPP) to halt the planned sale of Lafarge Cement Plc to a Chinese company, citing concerns over national security and economic sovereignty.
Lafarge Cement, a major player in Nigeria’s construction and industrial sectors, operates in Ewekoro Local Council, Ogun State. The Senate’s intervention aims to ensure that any divestment aligns with Nigeria’s strategic interests and does not compromise national control over critical industries.
During plenary on Tuesday, Senator Shuaib Salisu (Ogun Central) raised a motion emphasizing the strategic importance of Lafarge Cement to Nigeria’s infrastructure development.
According to him, the company is not just a business but a crucial driver of job creation and economic growth.
Concerns Over Foreign Ownership and Economic Risks
The controversy stems from a $1 billion deal in which Holcim AG, the majority stakeholder in Lafarge Africa (owning 83.8%), agreed to sell its shares to Huaxin Cement Co., a Chinese manufacturer. The deal, expected to be finalized in 2025, still requires regulatory approval.
However, Senator Salisu raised concerns that the sale could lead to:
Capital flight, as profits may no longer be reinvested locally.
Job losses, impacting thousands of Nigerian workers.
Weakened regulatory oversight, as foreign ownership might undermine local control over pricing and production policies.
He also revealed that Nigerian investors had shown interest in acquiring Lafarge, but faced difficulties in securing the deal.
“We cannot afford to wake up one day and realize that our cement industry, one of the backbones of our economy, is entirely in foreign hands,” Salisu warned. “This is a matter of economic patriotism.”
In response, the Senate called for stronger policies that promote local investment in key industries, ensuring that Nigeria retains control over strategic assets.
With cement being a critical sector for national development, lawmakers stress the need for government intervention to protect industries that are vital to job creation, infrastructure growth, and economic stability.
