The Senate has approved the proposed acquisition of Lafarge Africa by a Chinese company, clearing a major regulatory hurdle for one of the largest foreign investments in Nigeria’s manufacturing sector.
The approval followed the adoption of a report by an ad hoc committee chaired by Senate Minority Leader Abba Moro after a seven-month review of the transaction involving Swiss building materials company Holcim AG, which is divesting its controlling stake in Lafarge Africa.
Lawmakers stated that the deal would not affect the 16.19 per cent shareholding owned by Nigerian investors, addressing concerns over the protection of local equity interests.
The approval paves the way for the Chinese investor to join major players such as Dangote Cement and BUA Cement in Nigeria’s highly competitive cement industry, a sector that plays a critical role in infrastructure development and housing projects.
Nigeria’s cement market has traditionally been dominated by Dangote Cement, BUA Cement and Lafarge Africa, which together account for most of the country’s production capacity.
Although the acquisition is not expected to disrupt Lafarge Africa’s day-to-day operations, it marks a significant ownership transition from a European parent company to a Chinese investor as competition within the industry continues to increase.
Industry observers believe the development reflects China’s growing interest in acquiring strategic manufacturing assets across Africa, following years of investment in infrastructure, mining, railway development and industrial projects on the continent.
With Nigeria’s growing demand for cement driven by rapid urbanisation, a housing deficit and ongoing infrastructure projects, the new ownership structure could provide Lafarge Africa with access to additional capital, advanced technology and stronger supply chain support.
The transaction also comes as competition among cement manufacturers continues to intensify. Dangote Cement remains the market leader with operations across several African countries, while BUA Cement has significantly expanded its production capacity in recent years.
Analysts believe the backing of a Chinese investor could strengthen Lafarge Africa’s financial position and improve its ability to compete for a larger share of Nigeria’s expanding construction market.
The acquisition could also enhance the company’s capacity to serve regional markets under the African Continental Free Trade Area (AfCFTA), creating new opportunities for exports across the continent.
With the Senate’s approval secured, the transaction has received significant regulatory backing, reinforcing Nigeria’s commitment to attracting foreign investment while safeguarding the interests of local shareholders.
If finalised, the deal will rank among the biggest Chinese acquisitions in Nigeria’s manufacturing industry, further strengthening China’s presence in the country’s industrial sector.
