LIRS seals Ikeja Shoprite over non compliance with tax regulations

The Lagos State Internal Revenue Service (LIRS) has sealed the Shoprite outlet at Ikeja City Mall following allegations that the retail chain failed to comply with its tax obligations.

The enforcement action took place on Tuesday, with LIRS officials placing a notice at the store’s entrance. The notice, stated that Shoprite had breached provisions of the Personal Income Tax Act (PITA) 2011 (as amended), an offence that carries penalties including fines and imprisonment under Section 94.

“Take notice that the owner/occupant of this premises has failed to comply with his/her tax obligations under the relevant tax laws,” the LIRS notice reads.

The sealing is part of a broader compliance drive by LIRS, which in recent months has intensified enforcement operations against companies and individuals suspected of defaulting on taxes such as Pay-As-You-Earn (PAYE), withholding tax, and other statutory remittances.

Shoprite, one of Nigeria’s largest retail chains, operates multiple outlets across Lagos. The closure of its Ikeja branch, located in one of the busiest malls in the state has raised concerns among customers and traders who rely on the location for daily commercial activities.

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LIRS officials have previously warned that businesses that repeatedly fail to meet their tax obligations will face sanctions, including sealing of premises, until outstanding liabilities are resolved.

As of the time of reporting, Shoprite has not released an official statement regarding the enforcement action or steps being taken to address the alleged tax default.