Why We’re Blocking Chinese Firm From Buying Lafarge Cement – Senate Reveals

The Senate has directed the Bureau of Public Procurement (BPE), to immediately halt the planned sale of Lafarge Cement Plc to a Chinese company.

The move according to the Senate, is to protect national security and economic sovereignty.

It also mandated its Committees on Capital Market, Trade and Investment and Securities and Exchange Commission to ensure compliance with the directive.

The company is located in Ewekoro Local Government Area in Ogun State.

It explained that this is to ensure that the divestment process prioritises national security and economic sovereignty.

Raising the motion during plenary on Thursday, Senator Shuaib Afolabi Salisu, representing Ogun Central acknoweledged Lafarge Cement Plc’s strategic importance to Nigeria’s construction and industrial sectors, saying it is not just another company but a key pillar of Nigeria’s infrastructure development which provide jobs and supports economic growth.

He noted that Holcim AG, which holds 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 and is set for completion in 2025, pending regulatory approval.

Advertisement

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.

Salisu added that, “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,”.

Contributing to the debate, the Chairman of the Senate Committee on Appropriations, Olamilekan Adeola, urged the Senate to ensure that the divestment process is transparent and open for all capable interests to participate.

He said, “Mr President, 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.

Advertisement

And we are seeking the leave of this Senate to get involved to the extent of involving our various committees in the Senate which includes Committee on Capital and Security and Exchange Commission and also the Committee on Trade and Investment to look into this this transaction to ensure that all needed to be done to the level that every Nigerian who is capable and who is also interested can be given a level playing level field so that 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,”.

But Senator Jimoh Ibrahim, who chairs the Senate Interparliamentary Committee, called for caution in order not to interfere in the free flow of the company’s business.

He stated, “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 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 have no business whatsoever. When a company wants to divest, it can divest freely but the issue of transparency of government shares cam 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, 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, especially in a nation that converges itself without a free flow of economy.

(The Sun, excluding headline)

Advertisement