Court Gives Order After Senate Tells FG to Stop Sales of Larfarge Cement

• A Federal High Court ordered all parties in the ongoing legal battle over Lafarge Africa's sale to Huaxin Cement Ltd to maintain the status quo
• Strategic Consultancy Ltd. is contesting the sale while Lafarge's legal team has filed an appeal against the court's jurisdictional decision
• Justice Allagoa upheld the status quo to protect the case's subject matter, with the case adjourned to October 9, 2025.

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

In the ongoing legal battle over the sale of Lafarge Africa Plc to the Chinese company Huaxin Cement Ltd, a Federal High Court in Lagos has ordered all parties to maintain the status quo while an appeal is being heard.

After Lafarge Africa filed a notice of appeal contesting the court's previous decision, which rejected its objection to the court's jurisdiction, Justice Lewis Allagoa issued the directive on Wednesday.

Strategic Consultancy Ltd., a Nigerian business that owns stock in Lafarge Africa, filed the lawsuit in an attempt to stop the Holcim Group, a Swiss multinational and Lafarge's parent company, from selling what it called a "surreptitious" 83.81% of Lafarge's majority shareholding.

The Companies and Allied Matters Act (CAMA) 2020, the Securities and Exchange Commission Act, and the Nigeria Investment Promotion Commission (NIPC) Act are among the corporate and investment laws that Strategic Consultancy is requesting the court to rule on, particularly with regard to minority shareholders and foreign entities that are not registered in Nigeria.

Babatunde Fagbohunlu, SAN, Lafarge Africa's attorney, told the court during Wednesday's hearings that an appeal had already been lodged against the jurisdictional decision.

Along with an appeal for a stay of proceedings, he also revealed that the Court of Appeal had received the proceedings records. He asked the court to wait for the appeal court to make a decision on the jurisdictional question before moving forward with the substantive matter.

Speaking as well, Mene Josiah, the second defendant's attorney, acknowledged that he had submitted a comparable notice of appeal. He echoed the demand for a stay of proceedings, stating that it was essential to safeguard the interests of all parties and avoid prejudice.

D.A. Awosika, SAN, Strategic Consultancy's attorney, contended that his client had not received any notice of appeal. He further argued that a notice of appeal does not automatically function as a stay of proceedings under Order 11, Rule 4(1)(2) of the Federal High Court Rules.

According to Awosika, Lafarge's appeal merely concerns the suit's procedural aspects and has no bearing on the fundamental issues of the substantive case.

To ensure that none of the parties or possible interveners take any action that could jeopardize the case, he requested the court to issue a status quo order in addition to any stay it might consider granting.

In a succinct decision, Vanguard reported that Justice Allagoa upheld the preservation of the suit's subject matter and ordered all parties to maintain the status quo.

His words,

“In view of the Notice of Appeal, arguments by parties on both sides, and because of the need to protect the subject matter in this case, I hereby order that the status quo be maintained.”

The case was subsequently adjourned to October 9, 2025.

Senate tells FG to stop sales of Lafarge

Legit.ng reported that the Senate called on the federal government to immediately stop the proposed sale of Lafarge Cement to a Chinese investor through the Bureau of Public Procurement.

According to the Senate, the call is required to guarantee that Nigeria's economic sovereignty and national security are protected during the divestment process.

In Nigeria, the cement company runs three plants: Ashaka in Gombe State, Mfamosing in Calabar, Cross River State, and Ewekoro in Ogun State, The Nation reported.

Source: Legit.ng