THE Lagos State Internal Revenue Service (LIRS) has sealed the Shoprite outlet at the Ikeja City Mall over alleged failure to meet tax obligations.
In a notice spotted at the entrance, the LIRS said the breach is an offence punishable by fines and imprisonment 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.
“This is a contravention of the law punishable by both pecuniary penalties and imprisonment pursuant to section 94 of the Personal Income Tax Act 2011 as amended.”
The service also warned that the seal must not be removed without authorisation from the tax authority, noting that doing so is “an offence punishable by imprisonment”.
Enquiries to Shoprite and the Lagos tax authority on the matter were not responded to.
In August 2020, Shoprite announced plans to exit the Nigerian market after recording a continuous decline in sales.
The exit was finalised when Ketron Investment Limited, a special purpose vehicle (SPV) Persianas Investment Limited, acquired the retail brand’s Nigerian operations.
Since the deal, the retail outlet appears to be struggling to keep operations up.
In 2024, Shoprite Nigeria shut down its store in Wuse, Abuja, citing the outlet’s “financial situation and the current business climate”.
On December 16, 2023, the retail business also announced its decision to close a major store in Kano over similar reasons.
Recently, there have been media reports of empty shelves in several outlets and the closure of stores in Ilorin and Ibadan.
Shoppers also reported scanty displays with large sections of groceries and wines missing at the Ikeja City Mall.
However, the Retail Supermarkets Nigeria Limited (RSNL), operators of the Shoprite franchise in Nigeria, has denied reports suggesting that it is shutting down operations in the country.
In a statement, the company said it was undergoing a “comprehensive business model reset” to respond to Nigeria’s current economic realities.
The organisation said 80 percent of its products are now sourced locally, adding that the new structure is designed to stabilise operations and reposition Shoprite for long-term growth.
Speaking to journalists on the matter, Uchenna Uzo, a consumer retail expert, said the company’s struggles reflect broader challenges in the economy.
“Not only Shoprite, a couple of retail businesses, especially the ones that came from abroad,” he said.
