Nigeria’s cement industry is poised for increased competition following the approval of a proposed $1 billion acquisition of Lafarge Africa by Chinese-backed Hainan Huaxin Cement. The deal is expected to introduce a formidable new player into the market, challenging the dominance of leading manufacturers Dangote Cement and BUA Cement.
The transaction received the backing of the Senate after lawmakers adopted the report of an ad hoc committee chaired by Senate Minority Leader Senator Abba Moro. The committee concluded a seven-month review of the proposed sale by Swiss building materials company Holcim AG, which is divesting its controlling stake in Lafarge Africa.
According to the Senate, the acquisition will not affect the 16.19 percent equity stake owned by Nigerian investors, addressing concerns raised after Holcim announced its intention to exit the investment. Lawmakers expressed confidence that the deal would safeguard local shareholders’ interests while attracting fresh foreign investment into the sector.
Industry observers believe the entry of Hainan Huaxin Cement could intensify competition in Nigeria’s cement market, potentially driving increased investment, innovation, and production capacity as companies compete for a larger share of Africa’s biggest economy.
