By Ahmed Akanbi
The Senate has endorsed the proposed sale of Lafarge Africa Plc to Hainan Huaxin Pan-African Investment Company Plc, urging all relevant regulatory agencies to ensure strict compliance with Nigerian laws throughout the transaction.
The upper chamber said the acquisition should proceed provided all statutory requirements and due processes are fully observed to guarantee a seamless transaction and transition.
It also stated that, based on its findings, the proposed deal does not pose any immediate national security risk, while calling on regulatory authorities to maintain close oversight of the process.
The Senate further urged the company to strengthen its corporate social responsibility initiatives to ensure host communities benefit from its operations.
The resolutions followed the adoption of the report of the Senate Ad Hoc Committee on the proposed sale of Lafarge Africa Plc during Thursday’s plenary.
Presenting the report, Chairman of the committee and Senate Minority Leader, Senator Abba Moro, (PDP Benue South), said the committee carefully examined the economic and national security implications of the transaction.
According to him, the committee found no evidence that the acquisition would constitute a direct threat to Nigeria’s national security.
He added that the committee received assurances that there would be no staff retrenchment for at least two years after the transaction and noted that the company’s name and logo would remain unchanged.
Moro said the committee observed that the transaction represents a transfer of ownership between two foreign investors, as Lafarge’s current majority shareholder is already a foreign company. He noted that the proposed acquisition would not affect the investments of Nigerian shareholders.
The committee also concluded that the investment aligns with Nigeria’s policy of attracting foreign direct investment to stimulate industrial growth and economic development.
It noted that concerns over foreign ownership should be viewed in context, as Lafarge currently accounts for about 18 per cent of Nigeria’s cement market, while Nigerian public investors’ 16.19 per cent equity stake in the company will remain unchanged.
The report further highlighted assurances of employment stability during the transition in line with directives issued by the Federal Competition and Consumer Protection Commission (FCCPC).
According to the committee, Huaxin’s proposed investment plans are expected to create jobs, expand economic opportunities and add value to Nigeria’s economy.
The Senate therefore urged all regulatory agencies involved in the transaction to continue exercising their statutory oversight functions to ensure full compliance with applicable laws and regulations.