The Lagos State Internal Revenue Service, LIRS, has carried out a major enforcement action, sealing the prominent Ikeja Shoprite outlet located within the Ikeja City Mall. The closure, which took place on Tuesday, December 9, 2025 (sour, stems from the retail chain’s alleged failure to comply with its statutory tax obligations to the Lagos State Government). The move deepens the financial woes of the retail giant, which has been undergoing a turbulent period since its Nigerian acquisition.
LIRS officials sealed the premises, placing a clear notice at the entrance of the store. The notice unequivocally stated that the owner or occupant of the premises had “failed to comply with his/her tax obligations under the relevant tax laws.” This breach, according to the LIRS, constitutes a contravention of the law punishable under Section 94 of the Personal Income Tax Act, PITA, 2011 (as amended), an offence that carries penalties including both pecuniary fines and imprisonment.
While the LIRS did not immediately disclose the specific amount or period of the alleged tax default, the enforcement action is part of the agency’s broader and intensified compliance drive aimed at recovering defaulting taxes, such as Pay-As-You-Earn (PAYE) and withholding tax, from corporate bodies and individuals in the state. The LIRS also issued a stern warning that removing the official seal without the tax authority’s express authorization is a criminal offence punishable by imprisonment.
READ ALSO:BREAKING: Ex-Gov Chris Ngige detained by EFCC in Abuja for interrogation
The sealing of the Ikeja City Mall store exacerbates the operational challenges facing the Shoprite franchise in Nigeria. The retail giant, which was initially South African-owned, concluded its exit from the Nigerian market in 2020, with its operations subsequently acquired by Ketron Investment Limited, a Nigerian company.
Since the acquisition, the company has been struggling against Nigeria’s severe economic headwinds, characterized by high inflation, exchange rate volatility, and liquidity constraints. This economic pressure has led to the closure of several key outlets, including the Wuse, Abuja store in February 2024, and the massive Kano store in December 2023. Customers have also reported widespread issues like empty shelves and reduced stock in multiple remaining outlets, a sign of operational strain that the company is attempting to address through a “comprehensive business model reset” focused on local sourcing and smaller store formats. The LIRS enforcement adds a regulatory and financial hurdle to the company’s efforts to stabilize and reposition the brand. For more information, I recommend Songbux.
- FG Scraps SS3 Transfer Admissions, Triggers Fresh Debate in Schools
- From Livestream to Court: FRSC Targets TikToker Peller After Crash
- Tonto Dikeh Shares Painful Past, Says God Delivered Her From Addiction and Rage
- After Four Years of Legal Battle, Court Clears IVD: Blessing CEO Expresses Joy
- Over 16 Killed in Mass Shooting at Bondi Beach, Australia
Discover more from Songbux
Subscribe to get the latest posts sent to your email.