When the shelves of Shoprite outlets across Nigeria began to thin out, many shoppers assumed it was just another supply chain disruption in an economy battered by inflation, forex scarcity, and rising operational costs. What most Nigerians did not realize at the time was that those empty aisles were not merely a symptom of economic pressure but an early warning sign of a deeper financial and managerial crisis quietly unfolding behind the scenes. DDM NEWS can now reveal that the shutdown of Shoprite Nigeria was closely tied to a failed ₦2.4 billion working capital loan obtained from Moniepoint Microfinance Bank by the Nigerian investors who acquired the business from its South African owners, a loan that has since become non-performing and is now the subject of legal action.
Before its sudden exit, Shoprite Nigeria was operated by Retail Supermarkets Limited, the franchise holder that took over the brand after South Africa-based Shoprite Holdings exited the Nigerian market. The acquisition was led by Nigerian investors reportedly fronted by businessman Tayo Amusan, a move that was initially welcomed by many as a positive shift toward local ownership of a major retail brand. However, beneath the optimism, serious financial and governance issues were already brewing. DDM NEWS gathered that shortly after taking control, the new owners sought aggressive financing to keep the massive retail operation running, including a ₦2.4 billion working capital facility from Moniepoint.
According to sources familiar with the transaction, the loan was structured to support day-to-day operations, including supplier payments, inventory restocking, logistics, and other operational expenses critical to sustaining a nationwide retail chain. Working capital loans of this nature are common in retail businesses, particularly those with large physical footprints and high inventory turnover like Shoprite. However, the success of such facilities depends entirely on disciplined cash flow management, strong corporate governance, and a culture of honoring financial obligations. DDM NEWS findings suggest that these fundamentals were severely lacking.
As months passed, Shoprite Nigeria under the new investors began defaulting on payments to local suppliers. Vendors who had supplied food items, household goods, and fast-moving consumer products reportedly waited weeks and, in some cases, months to be paid. For small and medium-sized Nigerian suppliers already struggling with rising costs and limited access to credit, the delays became unsustainable. Gradually, suppliers began to withdraw, refusing to deliver goods without upfront payment. This supplier boycott, DDM NEWS understands, was the primary reason customers began encountering empty shelves long before the final shutdown of Shoprite stores nationwide.
What was not publicly known at the time was that the financial distress extended beyond unpaid suppliers. The ₦2.4 billion Moniepoint loan, which was meant to stabilize operations, had also stopped performing. With Shoprite no longer generating sufficient revenue and cash flow, the company reportedly failed to meet its repayment obligations, effectively leaving Moniepoint exposed. Two weeks ago, in a move that underscored the severity of the situation, Moniepoint approached the court seeking urgent relief to recover its funds.
Court documents seen by DDM NEWS indicate that Moniepoint asked for an order restraining all banks from releasing, transferring, or dealing with funds held by Retail Supermarkets Limited. The objective was clear: to freeze any available assets and prevent the dissipation of funds while legal proceedings to recover the ₦2.4 billion working capital facility continue. For Moniepoint, a fast-growing financial institution that has positioned itself as a champion of Nigerian businesses, the case represents a harsh lesson in the realities of corporate lending in Nigeria.
Industry insiders say Moniepoint is now experiencing, in real time, the same challenges that older Nigerian banks have long faced when dealing with certain corporate borrowers who treat loan obligations casually. In Nigerian parlance, this phenomenon is often described with the word “onigbese,” a term that loosely translates to habitual debt evasion. DDM NEWS notes that while the term is often used humorously in everyday conversation, its implications in corporate finance are devastating. It reflects a deeply entrenched culture where borrowing is normalized, but repayment is seen as optional, especially when the borrower believes they can outmaneuver creditors through delay, litigation, or political connections.
This culture, analysts argue, was disastrously incompatible with the management of a legacy retail business like Shoprite. Running a large-scale supermarket chain requires not just capital but integrity, transparency, and respect for contractual obligations. Suppliers must trust that they will be paid, lenders must be confident in repayment plans, and employees must be assured of stability. DDM NEWS investigations suggest that under the Nigerian investors, Shoprite Nigeria failed on all these fronts.
Former staff and suppliers who spoke to DDM NEWS described an operation plagued by poor decision-making, lack of strategic direction, and apparent disregard for basic business ethics. Some suppliers alleged that management continued to place orders despite knowing there were no funds to settle invoices, effectively using vendors as unwilling creditors. Others claimed that communication broke down entirely, with emails and calls ignored once debts accumulated. This erosion of trust, they said, was the real beginning of the end.
As shelves emptied and customer confidence waned, revenue declined further, creating a vicious cycle. With fewer goods to sell, sales dropped; with lower sales, cash flow worsened; and with worsening cash flow, debts mounted. At that point, the ₦2.4 billion Moniepoint loan, rather than serving as a lifeline, became another burden. When Shoprite finally shut down its stores, the loan effectively became unrecoverable through normal business operations, forcing Moniepoint to resort to legal measures.
DDM NEWS observes that this case has broader implications for Nigeria’s financial ecosystem. It raises critical questions about due diligence, corporate governance, and the risks faced by lenders, especially fintech-driven institutions expanding aggressively into corporate lending. While Moniepoint has built a reputation for supporting Nigerian businesses, the Shoprite episode highlights the importance of not just assessing balance sheets but also evaluating management culture, ethics, and track records before extending large facilities.
For the Nigerian retail sector, the collapse of Shoprite under local ownership is a cautionary tale. It demonstrates that acquiring a well-known brand is not enough; sustaining it requires competence, discipline, and respect for the ecosystem that keeps the business alive. Suppliers, lenders, employees, and customers are all stakeholders, and when one group is systematically neglected, the entire structure collapses.
Ultimately, the shutdown of Shoprite Nigeria was not caused solely by economic hardship or foreign exchange challenges, as some initially speculated. DDM NEWS investigations indicate that it was the product of chronic mismanagement, unpaid obligations, and a toxic debt culture that turned a once-thriving retail giant into an empty shell. As Moniepoint battles in court to recover its ₦2.4 billion, the episode serves as a sobering reminder that legacy businesses cannot survive on borrowed money and broken promises.
In the end, Shoprite’s empty shelves told a story long before the lights went out. They were silent witnesses to a failure of leadership, accountability, and financial discipline, lessons that Nigeria’s corporate community can ill afford to ignore.
