Nigeria’s cement industry is entering a new phase after the Senate approved the proposed $1 billion acquisition of Lafarge Africa by Chinese-backed Hainan Huaxin Pan-African Investment Company, paving the way for one of China’s largest manufacturing investments in the country.
The Senate endorsed the transaction on Thursday after adopting the report of its ad hoc committee, chaired by Senate Minority Leader Abba Moro, concluding a seven-month review of Holcim AG’s plan to sell its controlling stake in Lafarge Africa.
Lawmakers said the transaction would not affect the 16.19% equity stake held by Nigerian investors, addressing concerns that surfaced when Swiss building materials giant Holcim announced its decision to exit the company.
The approval removes a major regulatory hurdle and positions Hainan Huaxin alongside Nigeria’s leading cement producers—Dangote Cement and BUA Cement—in one of Africa’s most important construction markets.
For years, Nigeria’s cement industry has been dominated by three major players: Dangote Cement, BUA Cement, and Lafarge Africa. Together, they account for most of the country’s installed cement production capacity and play a critical role in supporting infrastructure development and housing projects.
Although the acquisition will not immediately change Lafarge Africa’s day-to-day operations, it marks a significant ownership transition from a European multinational to a Chinese-backed investor. Industry observers believe the move could provide Lafarge Africa with greater access to Chinese capital, advanced manufacturing technology, and stronger global supply chains.
The transaction also reflects China’s broader investment strategy across Africa. Beyond financing infrastructure projects, railways, mining operations, and industrial parks, Chinese companies are increasingly acquiring strategic manufacturing assets that support long-term industrial growth across the continent.
The acquisition comes as competition in Nigeria’s cement market continues to increase.
Dangote Cement remains the country’s largest producer with operations across several African markets, while BUA Cement has expanded rapidly through new production facilities and capacity upgrades.
With the financial backing of Hainan Huaxin, Lafarge Africa could strengthen its competitive position, invest in expansion, and capture a larger share of Nigeria’s growing construction sector, which continues to benefit from rapid urbanisation, a significant housing deficit, and major infrastructure projects.
The deal could also improve Lafarge Africa’s ability to supply regional markets under the African Continental Free Trade Area (AfCFTA), creating new export opportunities beyond Nigeria.
The Senate’s approval signals continued government support for foreign direct investment while protecting domestic shareholder interests through the preservation of Nigerian investors’ equity holdings.
If the transaction is completed, it will rank among the largest Chinese acquisitions in Nigeria’s manufacturing industry. The deal underscores Beijing’s expanding role in Africa—not only as a financier and builder of infrastructure but also as an investor in key industries that drive economic growth.
For Nigeria, the entry of Chinese-backed Hainan Huaxin into the cement industry is expected to reshape market competition and challenge the long-standing dominance of Dangote Cement and BUA Cement in Africa’s largest economy.
