The Lagos State Internal Revenue Service (LIRS) has shut down the Shoprite The Palms Lekki outlet in the Palms Shopping Mall, Lekki, citing failure to comply with his/her tax obligations under the relevant tax laws. A notice posted at the entrance stated:
“This premises has failed to comply with his/her tax obligations under the relevant tax laws. This is a contravention of the law punishable by both pecuniary penalties and imprisonment pursuant to Section 94 of the Personal Income Tax Act 2011 as amended. … The removal of this notice without prior authorisation by the LIRS is an offence punishable by imprisonment.” At the time of reporting, LIRS had not clarified whether the action targeted Shoprite specifically, the mall owners, or specific tenants inside the premises.
The closure serves as a clear signal from LIRS that tax enforcement is no longer optional for large retail operators. In recent years, the agency has emphasized modernising tax systems. For example, it said the goal is to make compliance easier and cheaper for the taxpayer. Additionally, LIRS has deployed automated invoicing systems for sectors such as hospitality and consumption-tax collection in Lagos state.
This enforcement could boost Lagos State’s internally generated revenue, helping reduce dependence on federal allocations. Lagos has already surpassed ₦1 trillion in revenue collection, suggesting that improved compliance among large retailers may enhance fiscal capacity and support further infrastructure and public-service funding.
