A Federal High Court sitting in Lagos has ordered all parties involved in the ongoing legal tussle over the sale of Lafarge Africa Plc to Chinese firm Huaxin Cement Ltd to maintain the status quo pending the outcome of an appeal. Justice Lewis Allagoa issued the directive on Wednesday, following a notice of appeal filed by Lafarge Africa challenging the courts earlier ruling, which dismissed its objection to the courts jurisdiction. The suit was instituted by Strategic Consultancy Ltd, a Nigerian firm and shareholder in Lafarge Africa, seeking to halt what it described as a surreptitious divestment of Lafarges 83.81 per cent majority stake by the Holcim Group, a Swiss multinational and Lafarges parent company. Strategic Consultancy is asking the court to determine whether the transaction violates Nigerian corporate and investment laws, including the Companies and Allied Matters Act CAMA 2020, the Securities and Exchange Commission Act, and the Nigeria Investment Promotion Commission NIPC Act, especially in relation to minority shareholders and foreign entities not registered in Nigeria. During Wednesdays proceedings, counsel to Lafarge Africa, Mr. Babatunde Fagbohunlu, SAN, informed the court that an appeal had already been filed against its ruling on jurisdiction. He also disclosed that records of proceedings have been transmitted to the Court of Appeal, along with an application for a stay of proceedings. He urged the court to refrain from continuing with the substantive matter until the appellate court rules on the jurisdictional issue. Also speaking, counsel to the second defendant, Mr. Mene Josiah, confirmed that he had filed a similar notice of appeal. He echoed the call for a stay of proceedings, arguing that it was necessary to prevent prejudice and to protect the interest of all parties involved. On his part, counsel to Strategic Consultancy, Dr. D.A. Awosika, SAN, argued that his client had not been served with any notice of appeal. He further contended that under Order 11, Rule 412 of the Federal High Court Rules, a notice of appeal does not automatically operate as a stay of proceedings. Awosika maintained that the appeal filed by Lafarge relates only to the mode of commencement of the suit and does not impact the core issues of the substantive case. However, he urged the court that, should it consider granting a stay, it must also issue a status quo order to ensure that none of the parties or potential interveners take any steps to prejudice the matter. In a brief ruling, Justice Allagoa agreed with the argument for preserving the subject matter of the suit and directed that all parties maintain the current state of affairs. 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 status quo be maintained. The case was subsequently adjourned to October 9, 2025. Lafarge Africa, a major player on the Nigerian Exchange and one of the countrys largest cement manufacturers, secured dominance in the market through its acquisition of stakes in three cement firms formerly owned by the Federal Government during the 2001 and 2002 privatisation rounds. The Holcim Group, which owns a controlling stake in Lafarge Africa, had previously notified Nigerias Securities and Exchange Commission SEC of an ongoing internal restructuring exercise. However, Strategic Consultancy alleges that the sale of Holcims 83.81 per cent shares to Huaxin Cement was conducted in secrecy, without offering local shareholders, especially minority stakeholders, the right of first refusal or any opportunity to participate. The controversy erupted after Strategic Consultancy claimed that it only became aware of the divestment after significant moves had already been made toward its conclusion. The firm has since accused Lafarge and its foreign majority shareholders of breaching Nigerian laws designed to protect local investors and ensure transparency in transactions involving foreign entities. On May 15, 2025, during a pre-trial session presided over by Justice Allagoa, the court dismissed Lafarge Africas preliminary objection challenging its jurisdiction. That ruling paved the way for the court to hear the substantive suit, prompting the subsequent appeal now pending before the Court of Appeal.
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