South African retailer, Shoprite has bought land in Nigeria to open an additional 12 stores in the country by 2010.

The company sees Nigeria, with its population of close to 150 million as the market in Africa with the highest growth potential. The group currently has only one outlet in The Palms shopping centre in Lagos.

According to Shoprite Holdings Ltd's Annual Report 2008, the Lagos store did well over the past financial year and generated acceptable profits. Sales were also not affected by occasional unrest in the oil fields in the south.

Shoprite is considering to establish a separate property investment company to construct and manage its retail sites in Nigeria and other African countries.