The Senate Committee on Capital Market plans to invite Lafarge Africa Plc for questioning regarding its proposed sale to a Chinese firm, aiming to ensure shareholder rights and transparency amidst concerns of foreign dominance in Nigeria’s cement industry. Osita Izunaso, the Chairperson of the Committee, announced this during a session with officials from the Securities and Exchange Commission (SEC), the Bureau of Public Enterprises (BPE), and the Federal Competition and Consumer Protection Commission (FCCPC) at the National Assembly complex in Abuja.

Mr. Izunaso indicated the possibility of a public hearing on the proposed sale, stating the Senate's willingness to open the process to public scrutiny if necessary. The committee intends to examine Lafarge, review the share structure with the Corporate Affairs Commission (CAC), and proceed accordingly.

Lafarge Africa Plc, Nigeria’s third-largest cement manufacturer by market capitalisation, is a subsidiary of Holcim AG, a global building materials company. Holcim is reportedly in the process of finalising a $1 billion deal to divest its 83.8% stake in Lafarge Africa to Huaxin Cement Co., a Chinese firm. The transaction is expected to close in 2025, pending regulatory approval.

The proposed sale raised concerns in the Nigerian Senate in March, leading Senator Shuaib Salisu to sponsor a motion addressing transparency and access for Nigerian investors. During a Senate debate on March 28, lawmakers differed in their positions, with some cautioning against obstructing private sector transactions and foreign investment, while the majority emphasised the need for government oversight. The Senate directed the BPE and the SEC to ensure the sale aligns with Nigeria’s economic and national security interests and tasked its Capital Market Committee with scrutinising the matter.

During the session, SEC Director General Emmanuel Agama, represented by Abdulkabir Abbas, clarified that the commission has not received any formal application regarding the sale. He noted that a 27.77% equity stake held by Associated International Cement Limited was transferred to Davis Peak Holdings Limited, another Holcim-owned entity, with no change in ultimate beneficial ownership.

BPE Director of Post-Transaction, Satura Bello, clarified that the shares being divested belong to Lafarge Africa Plc and do not affect the 16.19% stake held by Nigerian investors. The Nigerian shareholders’ stake remains intact.

Following submissions from the SEC and BPE, the Senate committee chairman stated that Lafarge Africa Plc's management would be invited for questioning and further clarification. He also directed the committee’s clerk to request detailed information from the CAC on the ownership structure and any divestment activities related to Lafarge Africa.

Lafarge Africa has cement operations in the South-west (Ewekoro and Sagamu in Ogun State), North-east (Ashaka, in Gombe State), and South-east (Mfamosing, Cross Rivers State), with Ready-Mix operations in Lagos, Abuja, and Port Harcourt. It has a current installed cement production capacity of 10.5 metric tonnes per annum.