The Lagos State Internal Revenue Service (LIRS) has executed a high-profile enforcement action, sealing the major Shoprite supermarket located at the Ikeja City Mall. The closure, carried out on Tuesday, December 9, 2025, is due to the retailer’s alleged failure to comply with its statutory tax obligations.
This decisive move by the LIRS is a significant setback for the supermarket chain, coming amid increasing regulatory scrutiny of businesses across the state.
The Details of the Tax Infraction
LIRS officials affixed an official seal and prominent notice to the store’s entrance, clearly stating the reason for the action. The notice specified that the company was in contravention of Section 94 of the Personal Income Tax Act (PITA) 2011 (as amended).
The tax body warned that failure to meet tax responsibilities constitutes an offence that is subject to pecuniary penalties and potential imprisonment. The action is widely understood to be part of a broader, intensified campaign by the LIRS to ensure full compliance with remittances such as Pay-As-You-Earn (PAYE) taxes, which are deducted from employee wages.
Note: The LIRS has issued a strict caution that any unauthorised tampering with the official seal is a criminal act.
A Growing Crisis for the Retail Giant
This closure is the latest in a series of operational difficulties faced by the Shoprite brand in Nigeria. While Ketron Investment Limited now owns the company’s Nigerian operations, the brand has continued to shrink its footprint across the country:
- The Wuse, Abuja branch closed its doors earlier in 2024.
- A major store in Kano was also shut down in late 2023.
Industry observers suggest that the brand’s struggles are emblematic of the wider turbulence affecting large-scale retailers in Nigeria, particularly given the pressures from high inflation and exchange rate volatility, which have severely impacted supply chains and increased the cost of imported stock.
Next Steps for Shoprite
As of Thursday afternoon, the Ikeja store remains sealed. The operator, Retail Supermarkets Nigeria Limited (RSNL), is expected to be in urgent communication with the LIRS to reconcile the outstanding tax liabilities.
A swift resolution is paramount for the company to avoid further disruption, especially as the busy Christmas and New Year trading period approaches. The store cannot legally reopen until the LIRS confirms that the required compliance measures have been met and authorises the removal of the official seal.
Update: Ikeja Shoprite Remains Sealed (As of December 11, 2025)
As of Thursday, December 11, 2025, the Shoprite outlet at the Ikeja City Mall remains sealed by the Lagos State Internal Revenue Service (LIRS). There has been no official statement from either the LIRS regarding the unsealing or from the operator, Retail Supermarkets Nigeria Limited (RSNL), confirming the payment of the outstanding tax liabilities.
- Status: The store is physically closed and sealed, preventing any trading activity.
- Likely Scenario: RSNL is almost certainly engaging in rapid negotiations with the LIRS’s technical team. The priority will be to reconcile the PAYE (Pay-As-You-Earn) tax deductions and other tax balances, pay the penalty, and secure a clearance certificate.
- Reopening Timeline: The store can only reopen once the LIRS officially verifies the company is compliant and authorises the removal of the seal. This process usually involves verifying payment and compliance status checks. Given the high-profile nature of the closure, both parties will be under pressure to resolve the issue quickly, especially ahead of the peak festive season.
For context, RSNL had previously issued a strong statement in late November 2025, denying claims that their Lekki store was sealed and reaffirming their commitment to full tax compliance across their operations in Nigeria. However, the subsequent, confirmed sealing of the flagship Ikeja store shows that significant compliance issues remain unresolved.
