By Nathaniel Zacchaeus Abuja
The Senate yesterday directed the Bureau of Public Procurement to immediately halt the planned sale of Cement Plc to a Chinese company.
The company is located in Ewekoro Local Government Area in Ogun State.
The Senate said the move was in a bid to protect national security and economic sovereignty,
It explained that this would ensure the divestment process prioritises national security and economic sovereignty.
Senator Afolabi Salisu, representing Ogun Central, noted Lafarge Cement Plc’s strategic importance to Nigeria’s construction and industrial sectors.
He said it is not just another company but a key pillar of Nigeria’s infrastructure development, providing jobs and supporting 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 $1bn. Pending regulatory approval, the transaction is set for completion in 2025.
According to him, there are concerns that 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 a willingness to participate, yet they face unnecessary barriers. This is a matter of economic patriotism. This is about protecting Nigeria’s financial future.
“We must ensure that strategic assets like Lafarge Cement remain in the hands of those with the country’s best interests at heart.”
Senator Olamilekan Adeola said, “What we are asking for is one company that has been in existence for over 50 years. This is one of the largest cement companies in Nigeria and sub-Saharan Africa.
“This is one company that, in one way or the other, has impacted 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. The motion simply asks that we want this transaction to be as transparent as possible.
“Where Nigerian investors and stakeholders can be given equal 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, including the Committee on Capital and Security and Exchange Commission.
“The Committee on Trade and Investment should look into this transaction to ensure that everything needs to be done so that every Nigerian capable and interested can be given a level playing field.
“By the time the eventual sale of this company is made, we will be delighted that it has been done with many levels of transparency and cooperation and to the extent that Nigeria’s economy will be protected.”
Senator Jimoh Ibrahim said that as good and well-crafted as the motion was, the Senate must be guided.
He said, “Whether we are in tedium with the submissions made or not, 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. Elements 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 unfair or transparent in commercial transactions.
“There should also be the right to enter a contract freely and leave at will. The Senate should not impede the free flow of democratic sales 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. Still, our oversight functions can capture the issue of transparent government shares and 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 the economy.”
