The Senate has initiated an inquiry into Lafarge Africa Plc’s decision to divest its majority 83.8% shareholding, raising fresh questions about transparency and the future of the cement giant’s ownership structure in Nigeria.
The Senate’s Committee on Capital Market, chaired by Senator Osita Izunaso (APC, Imo West), is spearheading the investigation. The committee has officially summoned Lafarge Africa Plc to provide clarity on its proposed divestment move. Senator Izunaso also instructed the clerk of the committee to write to the Corporate Affairs Commission (CAC) to verify the company’s memorandum and articles of association to determine the legal process required for such divestment.
This development follows a committee session with key regulatory agencies including the Securities and Exchange Commission (SEC), the Bureau of Public Enterprises (BPE), and the Federal Competition and Consumer Protection Commission (FCCPC). The session was held in response to widespread reports suggesting Lafarge Africa may be planning to transfer ownership to Chinese investors.
While addressing the Senate committee, Abdulkafir Abbas, who represented the Director-General of SEC, Emmanuel Agama, stated that the commission had not yet received any official documents indicating the sale of Lafarge Africa Plc to Chinese investors.
He noted, “Holcim Group holds 83.81% of Lafarge Africa Plc’s issued share capital through the following wholly owned entities:” and explained that an internal restructuring had taken place. According to him, Associated International Cement Limited had transferred its 27.77% equity to another Holcim entity, Davis Peak Holdings Limited. “There has been no change in the ultimate beneficial ownership of the shares as a result of this transaction,” he added.
Agama also reiterated that no formal filing for divestment had been submitted to SEC so far.
Meanwhile, Satura Aisha Bello, Director of Post Transaction at the BPE, assured lawmakers that the 16.19% shares owned by Nigerian stakeholders are not part of the planned divestment.
She explained that the shares being discussed belong to Lafarge itself, not the Nigerian public. Bello said Lafarge Africa holds 83% of the shares in three cement companies that were privatized by the federal government in 2001 and 2002. She confirmed that the portion allocated to Nigerian investors has not been altered.
