The Lagos State Internal Revenue Service (LIRS) has sealed the Shoprite outlet at the Ikeja City Mall over alleged failure to meet tax obligations.

The LIRS said it wielded the big stick because Shoprite’s breach is an offence punishable by fines and imprisonment under Section 94 of the Personal Income Tax Act, 2011 (as amended).

The LIRS’ notice placed at the entrance of Shoprite read: “Take notice that the owner/occupant of this premises has failed to comply with his/her tax obligations under the relevant tax laws.

“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”.

However, the sealing of Shoprite outlet added to the woes of the popular retail brand, which, in August 2020, 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, Shoprite appears to be struggling to remain in business. In 2024, Shoprite Nigeria shut down its store in Wuse, Abuja, citing “financial situation and the current business climate”.

Again on December 16, 2023, Shoprite announced its decision to close a major store in Kano over similar reasons.

There have also been reports of empty shelves in several Shoprite 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, denied reports that its operations in Nigeria are being shut down.

Rather, the company said it was undergoing what it termed as “comprehensive business model reset” to respond to Nigeria’s current economic realities.

Perhaps, as part of the reset, Shoprite said 80 per cent of its products are now sourced locally, adding that the new structure is designed to stabilise operations and reposition the business for long-term growth. (The Nation, but headline rejigged)

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