Nigeria’s cement industry may be in for a major change following the takeover of Lafarge Africa by Chinese cement company Huaxin Cement.
Huaxin has completed the acquisition of an 83.81 per cent stake in Lafarge Africa in a deal reportedly worth about $1 billion. The company has now changed its name to HBM Nigeria Plc and will continue its operations in Nigeria under the new ownership.
The takeover comes at a time when the high cost of cement remains a major concern for Nigerians, especially builders and property developers. Despite Nigeria having several large cement producers, the price of a 50kg bag of cement remains high in many parts of the country.
With HBM Nigeria now joining major players such as Dangote Cement and BUA Cement, competition in the industry could become stronger.
Huaxin is known for expanding its business in international markets, and its entry into Nigeria could put pressure on other cement companies to offer more competitive prices and improve their services.
However, cheaper cement is not guaranteed. The final price of cement is affected by several factors, including the cost of electricity and fuel, transportation, inflation and other production expenses.
For Nigerians, the biggest hope is that the new competition will eventually lead to lower cement prices and make construction more affordable.
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