Abuja, Nigeria – June 24, 2024: Retail Supermarkets Nigeria Limited, operating as Shoprite, has announced its decision to cease operations at its Wuse branch in Abuja from June 30, 2024. The branch is situated at Novare Central Mall in Wuse Zone 5.
The announcement was made through a circular signed by Dr. Folakemi Fadahunsi, the Chief Executive Officer of Shoprite, and obtained by our correspondent on Monday. The decision comes after a thorough evaluation of the store’s financial situation and the prevailing business climate.
A staff member at the store, who requested anonymity, confirmed the report: “Yes, it is true, we just heard it here too.”
Details of the Circular
The circular reads:
“We regret to inform you that as of June 30, 2024, Retail Supermarkets Nigeria Limited will be closing its Wuse Store located in Novare Wuse Central Mall, Abuja. This decision has been made after a thorough evaluation of the store’s financial situation and the current business climate. We believe this is the best course of action for our organization’s long-term growth.
Effective June 30, 2024, our company will no longer operate in Wuse, Abuja, and we will no longer require your services for the Novare Wuse Central Mall Store. Please note that all existing service contracts will also terminate for the store.”
Additionally, the company assured vendors that it would review accounting records over the next 60 days to settle any outstanding balances.
Economic Impact
This closure is part of a larger trend of multinational companies scaling down operations or exiting Nigeria entirely. Recently, beverage company Diageo sold its 58.02 percent shareholding in Guinness Nigeria to Tolaram Group on June 11, 2024.
Dr. Vincent Nwani, an economist and former Director of Research and Advocacy at the Lagos Chamber of Commerce and Industry, stated that the exodus of multinationals from Nigeria has resulted in a N94 trillion loss of output over the past five years.
List of Departing Companies
2020: Standard Biscuits Nigeria Ltd, NASCO Fiber Product Ltd, Union Trading Company Nigeria PLC, Deli Foods Nigeria Ltd.
2021: Tower Aluminium Nigeria PLC, Framan Industries Ltd, Stone Industries Ltd, Mufex Nigeria Company Ltd, Surest Foam Ltd.
2022: Universal Rubber Company Ltd, Mother’s Pride Ventures Ltd, Errand Products Nigeria Ltd, Gorgeous Metal Makers Ltd.
2023: Unilever Nigeria PLC, Procter & Gamble Nigeria, GlaxoSmithKline Consumer Nigeria Ltd, ShopRite Nigeria, Sanofi-Aventis Nigeria Ltd, Equinox Nigeria, Bolt Food & Jumia Food Nigeria.
2024 (First Six Months): Microsoft Nigeria, Total Energies Nigeria (affected by its divestment), PZ Cussons Nigeria PLC, Kimberly-Clark Nigeria, Diageo PLC.
This trend underscores the challenging business environment in Nigeria, prompting significant concern among economic analysts and business stakeholders.