Shoprite to Close: The Ninth International Company to Exit This Year

Retail Supermarkets Nigeria Limited (RSNL), which manages the Shoprite store in Abuja, has decided to close its Wuse branch on June 30, 2024.

The CEO, Folakeni Fadahunsi, said that they are closing Shoprite because it’s not making enough money and because running a business in Nigeria is very challenging.

Why Shoprite is Closing

In a press release, Fadahunsi mentioned that the decision came after carefully looking at how Shoprite was doing financially and considering the tough business conditions in Nigeria.

“Closing the store is the best thing to do for our company’s future,” he stated.

Businesses in Nigeria face many problems, like changing government rules, unreliable electricity, and an unstable economy.

These issues make it expensive and difficult to keep a store open, especially one that depends on goods from other countries.

Why the Nigerian Government is at Fault for This

Since President Bola Tinubu took office on May 29, 2023, many foreign companies have left Nigeria. This has created a lot of economic uncertainty and instability.

Dr Vincent Nwani, an economist and former director at the Lagos Chamber of Commerce and Industry, said that Nigeria has lost N94 trillion in economic output in the last five years because of these departures.

Recently, the beverage company Diageo sold its 58.02% share in Guinness Nigeria to Tolaram Group on June 11, 2024.

This is just one example of how big companies are reducing their operations, changing ownership, or leaving the Nigerian market entirely.

The closing of the Shoprite store in Wuse is a sign of bigger problems in Nigeria’s retail market, making people wonder if it’s a good place to invest or run a store.

RSNL is planning to pay all its debts as it closes Shoprite and is looking for better business opportunities in other parts of Nigeria.

This situation shows how tough it is for businesses in Nigeria and raises questions about how much support the government is providing to help keep a stable and supportive business environment.