Court restrains Shoprite directors from selling assets over judgment debt

A federal high court in Ikoyi, Lagos, has restrained the directors of Shoprite from selling the company’s shares or assets until the satisfaction of the judgment debt.

The court also ordered the directors to disclose all movable and immovable assets belonging to the company to the judgment creditor.

Ambrose Lewis-Allagoa, the presiding judge, issued the order following an ex parte application filed on November 21, 2025, in furtherance of a consent judgment entered on July 22, 2025.

The application was moved by Tobenna Nnamani, counsel to the judgment creditor, who urged the court to issue garnishee orders nisi to attach funds belonging to the judgment debtor across multiple financial institutions.

Following the court order, the creditor’s counsel has requested asset details of ShopRite from Jide Ogundare and other directors of the company, including information on the distribution centre in Ajao, Lagos, and all relevant trademarks.

The matter was adjourned to May 7, 2026, for further proceedings.

BACKGROUND

The legal action against Shoprite stems from a N1.76 billion judgment debt arising from its failure to comply with a court-approved settlement agreement.

The dispute involves African Retail Tabloid Limited (ARTL) and UEL Global Resources Limited (UEL), which had instituted separate claims against Retail Supermarkets Nigeria Limited (RSNL), the operator of Shoprite in Nigeria.

ARTL had filed a petition seeking the winding-up of RSNL over an alleged debt of N440 million, while UEL pursued a summary judgment claim of N1.33 billion.

According to reports, the parties later agreed to an out-of-court settlement, which was formalised through a consent judgment delivered by Lewis-Allagoa.

Under the terms of the agreement, RSNL was to pay a total sum of N1,765,991,433.23 in 13 instalments.

The repayment plan was said to have commenced with N400 million due on July 17, 2025, and was scheduled to end with a final payment of about N66 million on January 18, 2026.

The judgment also stipulated that all payments be made into designated accounts with Zenith Bank.

In the event of default, the court said the entire outstanding balance becomes immediately due and will accrue interest at 20 percent per quarter until fully repaid.

According to a demand letter dated November 7, 2025, and issued by the creditors’ legal representatives to RSNL’s managing director, the company failed to meet the agreed payment terms, thereby activating the default clause. (TheCable)