Senate gives reason as it tells FG to stop sales of Lafarge cement to Chinese firm

The projected merchantability of Lafarge Cement to a Chinese capitalist was urged to beryllium promptly halted by the Senate

The petition is present required to warrant that the divestiture process protects nationalist security, according to the house

The cement institution operates Mfamosing successful Calabar, Cross River State; Ewekoro successful Ogun State; and Ashaka successful Gombe State

Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

The Senate called connected the national authorities to instantly halt the projected merchantability of Lafarge Cement to a Chinese capitalist done the Bureau of Public Procurement.

Senate members said strategical assets similar Lafarge Cement stay successful the hands of those who person the country’s champion interests astatine heart. Photo credit: Senate
Source: UGC

According to the Senate the telephone is required to warrant that Nigeria's economical sovereignty and nationalist information are protected during the divestment process.

In Nigeria, the cement institution runs 3 plants: Ashaka successful Gombe State, Mfamosing successful Calabar, Cross River State, and Ewekoro successful Ogun State, The Nation reported.

The Senate passed the solution aft considering and passing a question presented by Senator Shuaib Afolabi Salisu (APC-Ogun Central) titled, "Urging the Federal Government to halt the merchantability of Lafarge Cement Plc to Chinese investors successful the involvement of National Security."

In his pb debate, Senator Salisu emphasized the strategical value of Lafarge Africa Plc to Nigeria's concern and operation sectors, stating that it is not lone different concern but alternatively a captious constituent of the country's infrastructure development, which creates jobs and fosters economical expansion.

He told his colleagues that, taxable to regulatory permission, Holcim AG, which owns 83.8% of Lafarge Africa Plc, plans to merchantability its shares to the Chinese cement shaper Huaxin Cement Company for $1 billion. The merchantability is expected to beryllium completed successful 2025.

He claims that determination are worries due to the fact that the statement whitethorn effect successful occupation losses, superior flight, and little regulatory power successful an country that is indispensable to the maturation of the country.

“We cannot spend to aftermath up 1 time and realise that our cement industry, 1 of the backbones of our economy, is wholly successful overseas hands.“Local investors person shown willingness to participate, yet they look unnecessary barriers. This is simply a substance of economical patriotism. This is astir protecting Nigeria’s economical future.“We indispensable guarantee that strategical assets similar Lafarge Cement stay successful the hands of those who person the country’s champion interests astatine heart,” Salisu said:

Senate members said the cement institution is simply a captious constituent of the country's infrastructure development, which creates jobs and fosters economical expansion. Photo Credit: FG
Source: UGC

Salisu’s question reads successful part:

“Aware that the cement manufacturing industry is simply a captious assemblage straight linked to nationalist information owed to its value successful infrastructure development, including operation of roads, bridges, housing, and different captious nationalist works;“Also alert that the dominance of overseas ownership successful specified a delicate assemblage poses risks to Nigeria’s economical sovereignty and nationalist information interests;

Senators successful their contributions supported the question and approved its prayers erstwhile they were enactment to dependable ballot by the presiding serviceman successful Senate.

Cement institution doubles nett

Legit.ng reported that For the fiscal twelvemonth that concluded connected December 31, 2024, Lafarge Africa Plc reported a profit aft taxation of N100.1 billion, which is simply a 96% summation implicit the N51.1 cardinal reported successful 2023.

Revenue for the cement shaper besides increased, rising 72% to N696.8 cardinal successful 2024 from N405.5 cardinal the twelvemonth before.

Despite ongoing macroeconomic difficulties, Lafarge Africa's occurrence was fueled by accrued income measurement and amended pricing tactics, according to institution audited fiscal results submitted connected Thursday to the Nigeria Exchange.

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Source: Legit.ng