LIRS Seals Shoprite Ikeja Over Alleged Tax Default

• The Lagos State Internal Revenue Service sealed the Shoprite outlet at Ikeja City Mall for alleged failure to meet tax obligations under the Personal Income Tax Act.

The Lagos State Internal Revenue Service (LIRS) has sealed the Shoprite outlet located in the Ikeja City Mall over allegations of unpaid taxes. A notice seen at the entrance on Monday stated that the breach is punishable under Section 94 of the Personal Income Tax Act (2011, as amended).

According to the notice, the occupant of the premises failed to comply with tax obligations. The LIRS warned that the seal must not be removed without authorisation, stressing that doing so is an offence that could attract imprisonment.

Neither Shoprite nor the Lagos tax authority responded to enquiries on the matter.

This development comes amid a challenging period for the retail giant. Shoprite exited the Nigerian market in 2020, transferring operations to Ketron Investment Limited. Since then, the company has struggled to maintain operations, shutting down outlets in Abuja, Kano, and other cities. Shoppers have recently reported empty shelves and low stock at several stores, including the Ikeja location.

However, Retail Supermarkets Nigeria Limited (RSNL), operators of the brand, has dismissed reports of a total exit. The company said it is undergoing a “comprehensive business model reset” to adapt to Nigeria’s economic realities. It noted that 80 percent of its products are now sourced locally, a move aimed at stabilising operations and positioning the business for growth.

Consumer retail expert Uchenna Uzo told VerseNews that Shoprite’s difficulties reflect broader economic challenges faced by many retail companies.

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“Shoprite is now Nigeria-owned. They have been struggling, and the struggle is really due to the economic situation — inflation, high import costs, tied-down inventory,” he said. He added that many shoppers are shifting to smaller neighbourhood stores.

On the tax matter, Uzo said he could not comment directly, but noted that retailers are still adjusting to new tax rules expected to take effect in January.

“Many retail businesses are in an adjustment period because of the shocks we have faced in the economy,” he said, while expressing optimism that conditions will improve in the coming months.