Shoprite Outlet Shut by Lagos Tax Authority for Alleged Breach of Tax Laws
- The LIRS has sealed the Shoprite outlet at Ikeja City Mall over alleged failure to meet tax obligations
- The tax agency cited penalties under Section 94 of the Personal Income Tax Act for the alleged breach
- Operators of Shoprite Nigeria say the company is undergoing a business model reset
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, tech and macroeconomic trends in Nigeria.
The Lagos State Internal Revenue Service (LIRS) has sealed the Shoprite outlet at Ikeja City Mall over what it described as the company’s failure to comply with its tax obligations.
According to a notice displayed at the entrance of the store, LIRS took the action in line with provisions of the law, The Cable reported
In the notice, the LIRS stated that the alleged breach is punishable under Section 94 of the Personal Income Tax Act, 2011 (as amended).
“Take notice that the owner/occupant of this premises has failed to comply with his/her tax obligations under the relevant tax laws,” the notice reads.
It warned that removing the seal without approval from the tax authority also constitutes an offence that could lead to imprisonment.
Source: Getty Images
Economic pressure forces closures
The closure adds to the challenges facing the retail brand in Nigeria. Shoprite had earlier announced plans to exit the country in August 2020 after a prolonged decline in sales.
Its Nigerian operations were later taken over by Ketron Investment Limited, a special purpose vehicle of Persianas Investment Limited.
Since the acquisition, the brand has continued to face operational difficulties. In 2024, Shoprite shut its Wuse store in Abuja, citing financial pressures and the tough business climate.
Similar closures occurred in late 2023 when the retailer exited a major outlet in Kano. Customers have also reported empty shelves and reduced stock across several locations, including the Ikeja City Mall outlet and stores in Ilorin and Ibadan.
Responding to concerns about its future in Nigeria, Retail Supermarkets Nigeria Limited (RSNL), the franchise operator of Shoprite in the country, dismissed reports suggesting it was planning a full exit.
The company said it was currently implementing a “comprehensive business model reset” to adapt to the economic realities in Nigeria.
According to RSNL, about 80% of Shoprite’s products are now sourced locally. The firm said this shift is part of efforts to stabilise operations and strengthen the business for long-term sustainability.
Legit.ng reported the shutdown of ShopRite, alongside other shopping malls in Enugu, over failure to pay tax in 2024.
Source: Getty Images
Enugu State Internal Revenue Service had said the action became necessary after the affected malls ignored warning notifications, noting that the malls will remain closed until issues are resolved.
“On the other hand, ShopRite has frustrated all our efforts to get them to do what they need to do. It is always one story or another. Eventually, they promised us that before the end of February, they would do something, but we are in March, and the ESIRS have not heard from them,” he agency had said at the time.
ShopRite sold businesses in Ghana, Malawi
Legit.ng earlier reported that Shoprite Holdings announced its decision to sell its businesses in Ghana and Malawi to focus more on its domestic market.
The company cited challenges such as currency volatility, inflation, and high import taxes in markets like Angola and Nigeria, although a court order in 2023 restrained it from selling off its assets in Nigeria.
Meanwhile, the company said it expected a rise in headline profits per share and group revenues by the end of the first half of 2025.
Source: Legit.ng
