Shoprite Mall has announced it will cease operations in one of its Abuja branches, located at Novare Central Mall in Wuse Zone 5, effective June 30, 2024. This decision, detailed in a circular signed by Chief Executive Officer Dr. Folakemi Fadahunsi, follows a thorough evaluation of the store’s financial situation and the prevailing business climate.
An anonymous store employee confirmed the closure, stating, “Yes, it is true, we just heard it here too.” Shoprite also notified vendors that their services would no longer be needed at the store.
The circular read, “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.”
Shoprite will review its accounting records over the next 60 days to settle any outstanding balances with vendors tied specifically to the Novare Wuse Central Mall Store.
This closure is part of a broader trend of multinational companies exiting Nigeria, significantly impacting the nation’s economy. Notably, Diageo recently sold its 58.02% shareholding in Guinness Nigeria to Tolaram Group.
Dr. Vincent Nwani, an economist and former Director of Research and Advocacy at the Lagos Chamber of Commerce and Industry, highlighted that Nigeria has suffered a N94 trillion loss of output over five years due to the departure of multinationals. Major companies such as Standard Biscuits Nigeria Ltd, Union Trading Company Nigeria PLC, and Unilever Nigeria PLC have shut down operations or scaled back significantly since 2020.
The first half of 2024 alone has seen five listed major companies exit, including Microsoft Nigeria, Total Energies Nigeria, and PZ Cussons Nigeria PLC.