Retail Supermarkets Nigeria Limited, the operators of Shoprite Mall, have announced that they will cease operations at their Wuse, Abuja branch on June 30, 2024.

The announcement was made in a circular signed by Chief Executive Officer Folakemi Fadahunsi. The company attributed the closure to the current business climate in the country, noting that the decision followed a thorough evaluation of the store’s financial performance.

Vendors have been informed that their services will no longer be required at the location. Shoprite also stated that it will review its financial records over the next 60 days to address any outstanding balances and set up a payment schedule.

“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,” the statement read.

“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.”

“If your services are specifically tied to the Novare Wuse Central Mall Store and if there is an outstanding balance between our companies, we will carefully review our accounting records over the next 60 days. We will then promptly contact you to confirm the amount owed and discuss a suitable payment schedule.”

Recent Business Closures in Nigeria

The closure of Shoprite's Abuja Mall is part of a growing trend of business closures across Nigeria due to challenging economic conditions. In recent years, several notable companies, including multinationals like GSK, Procter & Gamble, Sanofi, and more recently Kimberly-Clark, have exited the country. These exits are often attributed to issues such as weak foreign exchange, high power costs, and reduced consumer purchasing power due to rising inflation.

In the past 18 months, inflation has surged from around 22% to the current 33.95%, a 28-year high driven mainly by food and transport costs. Additionally, the naira has depreciated by over 100% in the last year, falling from around N462/$ to approximately N1470/$, following efforts by the Central Bank of Nigeria to unify the forex market and narrow the gap between official and parallel market rates.