Senators, mainly from Ogun State, Southwest Nigeria, are apprehensive over moves by investors to sell Lafarge Cement Plc to Chinese investors for $1bn.
The lawmakers’ fears stem from the fact that the company, located at Ewekoro in Ogun State, has been a key player in job creation, infrastructure development and industrial expansion within Nigeria, making it a critical national asset.
In a motion calling for the federal government’s intervention on the planned sale, Senator Afolabi Salisu (Ogun Central) noted that Holcim AG is set to sell its 83.8 percent stake in Lafarge Africa to a Chinese cement maker, Huaxin Cement Co.
The deal, Salisu noted, valued Lafarge Africa at $1bn, saying that the deal might be consummated anytime this year, subject to regulatory approval.
Salisu, supported by Senator Olamilekan Solomon Adeola (Ogun West), argued against the planned sale, warning that the dominance of foreign ownership in such a sensitive sector posed risks to Nigeria’s economic sovereignty and national security interests.
The motion further noted that several local investors and stakeholders have expressed interest in participating in the divestment process but have raised concerns about transparency and their limited access to equitable shares.
The motion read in part, “Concerned that about the long-term economic implications of foreign-dominated ownership of Lafarge Cement Plc, including capital flight, job losses, and potential challenges to regulating the activities of foreign-owned entities in strategic sectors.
“Also concerned that Nigeria has seen increasing foreign acquisition of key industries, raising fears of excessive reliance on external entities for critical components of national development.
“Allowing foreign investors to dominate such a vital sector without significant local participation undermines Nigeria’s efforts to build a self-reliant economy.
“Section 16 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), emphasises the need to ensure that the economic system does not result in the concentration of wealth or means of production in the hands of a few individuals or foreign entities.
“Also recalls that the Federal Government, through its policies, has consistently promoted the empowerment of local investors to stimulate domestic economic growth and industrialisation.”
The senators urged the Federal Government to halt the planned sale of the company to Chinese investors in the interest of national security.
The lawmakers also sought the intervention of the Bureau of Public Enterprises (BPE) and the Federal Competition and Consumer Protection Commission (FCCPC) to ensure that the divestment process is transparent and that equitable participation by Nigerian investors and stakeholders is allowed.
They also called on the federal government to develop a framework that will ensure that local investors hold a reasonable percentage in the ownership of strategic industries like Lafarge Cement Plc.
The Ogun senators urged the Senate to mandate its committee on Industries and Trade & Investment to engage with stakeholders, including Lafarge Cement Plc, the Federal Ministry of Trade and Investment, and other relevant agencies, to ensure compliance by everyone involved.
However, Senator Jimoh Ibrahim (Ondo South) countered the arguments of the Ogun State senators, saying that the said transaction involves private investors and that it would be unfair of anyone to call for government intervention in a purely private business deal.
Senators Fret Over Plans To Sell Lafarge Cement Plc To Chinese Investors is first published on The Whistler Newspaper
Source: The Whistler
