Court bars Shoprite directors from disposing assets over unpaid judgment debt

A FEDERAL High Court sitting in Ikoyi, Lagos, has issued an order restraining the directors of Shoprite from selling or transferring the company’s shares and assets pending the full settlement of an outstanding judgment debt.

The court further directed the company’s directors to provide a comprehensive disclosure of all assets, both movable and immovable, owned by the firm to the judgment creditor.

Justice Ambrose Lewis-Allagoa granted the orders after hearing an ex parte application filed on November 21, 2025. The application was made pursuant to a consent judgment earlier delivered on July 22, 2025.

Counsel to the judgment creditor, Mr Tobenna Nnamani, moved the application and urged the court to also grant garnishee orders nisi to enable the attachment of funds belonging to the judgment debtor held in various banks.

READ ALSO: Shoprite shifts focus to Southern Africa after exiting Nigeria, other West African markets

Following the ruling, the creditor’s legal team has formally requested detailed information on the company’s assets from director Jide Ogundare and others. The request covers key holdings, including the distribution centre located in Lagos, as well as all trademarks associated with the business.

The court adjourned the matter to May 7, 2026, for continuation of proceedings.

Backstory

The case originates from a judgment debt of N1.76 billion arising from the company’s failure to honour the terms of a court-endorsed settlement agreement.

The dispute involves African Retail Tabloid Limited (ARTL) and UEL Global Resources Limited (UEL), both of which filed separate suits against Retail Supermarkets Nigeria Limited (RSNL), the operator of Shoprite stores in Nigeria.

ARTL had initiated winding-up proceedings over an alleged N440 million debt, while UEL pursued a summary judgment claim of N1.33 billion.

The parties subsequently reached an out-of-court settlement, which was adopted by the court as a consent judgment.

Under the agreement, RSNL was to pay a total of N1,765,991,433.23 in 13 instalments. The payment schedule began with N400 million due on July 17, 2025, and was expected to conclude with a final instalment of approximately N66 million on January 18, 2026.

READ ALSO: Elumelu meets Tinubu, urges settlement of power sector debts to curb outages

All payments were to be made into designated accounts with Zenith Bank. The court also stipulated that any default would trigger an acceleration clause, making the entire outstanding sum immediately payable, with interest accruing at a rate of 20 percent per quarter until liquidation.

However, in a demand letter dated November 7, 2025, the creditors’ lawyers notified the company’s managing director that RSNL had failed to comply with the agreed repayment terms, thereby activating the default provisions.