LIRS seals Ikeja Shoprite over alleged tax noncompliance

The Lagos State Internal Revenue Service (LIRS) has sealed the Shoprite outlet at the Ikeja City Mall, accusing the retail chain of failing to meet its tax obligations under state and national tax laws.

A notice posted at the store’s entrance on Monday stated that the breach amounts to an offence punishable by fines or imprisonment under Section 94 of the Personal Income Tax Act (PITA) 2011, as amended. The agency also warned that removing the seal without authorisation would attract additional penalties.
Efforts to get comments from Shoprite or the LIRS were unsuccessful.

A retailer still navigating years of operational struggles

The action by the tax authority adds to a growing list of setbacks for Shoprite since 2020, when its former parent company announced plans to exit the Nigerian market after prolonged declines in sales. The business was later acquired by Ketron Investment Limited, the vehicle owned by Persianas Group, but the transition has not fully stabilised operations.

In recent years, the retailer has closed multiple outlets, including the Wuse store in Abuja in 2024 and its Kano branch in 2023, both citing adverse business conditions. Reports of thinning shelves, limited product availability, and store closures in Ilorin, Ibadan, and parts of Lagos have further fuelled concerns about its commercial health.

FG: New Tax Reforms Aim to Ease Burden, Not Add Pain

Shoppers at the Ikeja City Mall have also complained about unusually sparse displays, with large sections of groceries, wines and household supplies missing in recent weeks.

Company insists it is restructuring, not shutting down

Retail Supermarkets Nigeria Limited (RSNL), operators of the Shoprite franchise in Nigeria, has denied suggestions that the brand is on the verge of collapse. The firm said it is undergoing a “comprehensive business model reset” to reflect the country’s shifting economic climate, noting that 80 percent of its merchandise is now sourced locally.

According to the company, the restructuring is meant to improve efficiency, cut costs and reposition the chain for long-term growth rather than signal a withdrawal from the market.

‘Many retailers are under pressure’ — expert

Consumer retail expert Uchenna Uzo told TheCable that Shoprite’s situation mirrors the wider pressures facing large retail chains operating in Nigeria.

He said businesses with heavy import dependence are struggling with inflation, rising operating costs and inventory pile-ups, while consumers increasingly turn to neighbourhood supermarkets offering cheaper alternatives.

How To Get Your Tax Identification Number

Uzo added that retailers are still adjusting to upcoming changes in the tax regime expected to take effect in January, which could affect invoicing and reporting practices. Although he was not aware of the specifics of Shoprite’s tax case, he noted that many businesses are in a transition phase after years of economic shocks.

Despite current challenges, he believes the retail sector could see improved stability if broader economic conditions strengthen in 2026.