The Senate yesterday directed the Bureau of Public Procurement (BPP) to immediately halt the planned sale of Lafarge Cement Plc to a Chinese company on grounds of national security and economic sovereignty.

The Senate  explained that this would ensure that the divestment process prioritises national security and economic sovereignty. The company is located in Ewekoro Local Government Area in Ogun State.

Senator Shuaib Afolabi Salisu, representing Ogun Central, noted Lafarge Cement Plc strategic importance to Nigeria’s construction and industrial sectors, stressing that it  is not just another company but a key pillar of Nigeria’s infrastructure development which provides jobs and supports economic growth.

He noted that Holcim AG, which holds an 83.8 per cent stake in Lafarge Africa, is set to sell its shares to Huaxin Cement Co., a Chinese cement manufacturer, in a deal valued at $1 billion in a transaction that is set for completion in 2025, pending regulatory approval.

According to him, there are concerns, as the deal could lead to capital flight, job losses, and reduced regulatory oversight over a sector vital to national development.

Afolabi added:  “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.”

Senator Olamilekan Adeola, in his remarks, said:  “What we are asking for, this is one company that has been in existence for over 50 years. This is one company that is the largest cement company in the whole of Nigeria and sub Saharan  Africa.

“This is one company that in one way or the other, has impacted on Nigeria’s economy through various involvements in various sectors of the Nigerian economy. The company is about to be divested and the transaction has been shrouded in secrecy. What the motion is simply asking for is that we want this transaction to be as transparent as possible.

“Where Nigerian investors and stakeholders can be given equal level of participation in the sale of this all-important company.  We are seeking the leave of this Senate to get involved to the extent of involving our various committees in the Senate which includes the Committee on Capital and Security and Exchange Commission.

“The Committee on Trade and Investment should look into  this transaction to ensure that all that needs to be done to the level that every Nigerian who is capable and who is also interested can be given a level playing field.

“By the time the eventual sale of this company is done, we will be fully satisfied that it has been done with much level of transparency, much level of cooperation and to the extent that Nigeria’s economy will be protected.”

Senator Jimoh Ibrahim said as good and as well crafted as the motion was, the Senate must be guided. He said: “Whether we are in tandem with the submissions made, we have to be guided as a Senate. We cannot convert the Senate to a sales company or Bureau of Public Enterprise.

“The laws are very clear, agencies of government have been established by law, one of which is the Bureau of Public Enterprises and we cannot sit as a Senate to judge them as being unfair or transparent in commercial transactions.

“I do think that there should also be the right to enter into a contract freely and the right to leave at will. The Senate should not be an impediment to a free flow democratic sale of any company in Nigeria. The Senate should converge to see the sanctity of contracts, not to be an impediment to the contract or be a sales agent.

“Our Committee has no business whatsoever. When a company wants to divest, it can divest freely but the issue of transparency of government shares can be captured by our oversight functions but individuals selling have nothing to do with the Senate.

“It is on this ground that I want to say very clearly that we must be very careful, because I am from the private sector and I have a lot of experience in sales and buying of government assets and I know the consequence that comes with it.”