Tax Breach: Lagos Govt Seals Shoprite Outlet in Ikeja City Mall
Kehinde Adeleye
The Lagos State Internal Revenue Service (LIRS) has sealed the Shoprite outlet at the Ikeja City Mall over alleged failure to fulfil its tax obligations.
According to LIRS, Shoprite’s violation is an offence punishable by fines and imprisonment under Section 94 of the Personal Income Tax Act, 2011 (as amended).
A notice placed at the entrance of the mall 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 agency warned that the seal must not be removed without proper authorisation, noting that doing so also carries a penalty under the law.
The enforcement action adds to the growing troubles of Shoprite in Nigeria. The retail giant had announced plans to exit the Nigerian market in August 2020 following declining sales.
Since transferring ownership to Retail Supermarkets Nigeria Limited (RSNL), the chain has grappled with multiple closures. In 2024, Shoprite shut down its Wuse, Abuja store, citing harsh business conditions. Earlier, in December 2023, another major outlet in Kano was shut.
Several other branches, including those in Ilorin and Ibadan, have reportedly struggled with empty shelves. At the Ikeja City Mall, shoppers have also complained of sparse displays, with large sections of groceries and wines missing.
RSNL, however, maintains that it is not shutting down its Nigerian operations but undergoing a “comprehensive business model reset” to adapt to current economic realities. The company said it now sources 80 per cent of its products locally, adding that the restructuring is aimed at stabilising and repositioning the brand for long-term growth.
