Debt is not a problem, Sujimoto says after paying over ₦40bn to creditors

Founder and Group Managing Director of Sujimoto Holdings, Dr. Sijibomi Ogundele, has reflected candidly on the dangers of reckless borrowing, revealing that the luxury real estate company has repaid more than ₦40 billion to banks and private lenders while committing to becoming debt-free by January 1, 2027.

Speaking on the lessons of navigating one of the most challenging periods in Nigeria’s recent economic history, Ogundele said borrowing itself is not inherently destructive to business, but that debt taken at unsustainable costs, without adequate safeguards against changing economic conditions, can threaten even fundamentally viable enterprises.

“Debt is not the problem; stupid borrowing is. Over the last 14 months, I have learnt the hard way that reckless borrowing can destroy even the most promising businesses,” Ogundele said.

According to him, Sujimoto endured an extraordinarily difficult period in which, for almost three years, the company did not sell a single unit, despite carrying approximately ₦126 million in monthly overheads and more than ₦500 million in operational commitments.

The combination of declining purchasing power, inflation, rising construction costs, currency volatility and a difficult operating environment created enormous pressure on the business.

Determined to retain employees, meet supplier obligations and keep construction projects moving, the company resorted to borrowing from commercial banks, private lenders, friends, family members and individuals who believed in the Sujimoto vision.

Ogundele explained that some of the facilities eventually became extremely expensive, with the effective cost of certain borrowings reaching as high as 100 per cent, placing enormous strain on the company’s cash flow.

“We borrowed because we believed sales would return. We had hundreds of employees and suppliers who depended on us, projects that had to be completed, and clients whose investments we were responsible for protecting. We chose to keep building rather than abandon our obligations.”

Over ₦40 Billion Repaid

Despite these challenges, Ogundele disclosed that Sujimoto has repaid more than ₦40 billion to banks and private lenders so far, describing the repayments as evidence of the company’s determination to honour its financial obligations.

He stressed, however, that the announcement is not intended only for lenders who have already been repaid.

According to him, it is equally an acknowledgement of every lender, investor, partner, friend and individual whose legitimate obligation remains outstanding.

“This message is not only for those we have repaid. More importantly, it is for every lender, partner and individual whose money remains outstanding. We acknowledge our obligations, we appreciate your patience, and we remain unequivocally committed to paying every legitimate debt.”

Ogundele said the company’s objective is clear: to settle its outstanding legitimate obligations and become debt-free by January 1, 2027.

“By the grace of God, we will repay every outstanding debt and obligation. We borrowed. We built. We delivered. And we will rise stronger.”

Lucrezia Completed, Homeowners Take Possession

Ogundele also pointed to the completion and handover of Lucrezia by Sujimoto as an important milestone in the company’s recovery and demonstration of its commitment to delivery.

Homeowners are now taking possession of their apartments and commencing furnishing, marking a significant chapter for the project and the company.

For Ogundele, completing Lucrezia during a period of intense financial pressure represents more than the delivery of a luxury development; it demonstrates the company’s determination to fulfil its commitments despite difficult circumstances.

“There were moments when walking away would have been easier. But we understood that behind every apartment was a client who trusted us, behind every supplier was a business and a family, and behind every employee was a livelihood. We had to keep going.”

Rethinking the 69-Storey Leonardo

Sujimoto is also redesigning its next major development, The Leonardo, a proposed 69-storey luxury residential tower envisioned to become Africa’s tallest residential building.

Ogundele said lessons from the company’s recent experience are influencing the project’s financing, development and execution strategy.

Rather than pursue growth at any cost, he said the company’s future expansion will be driven by stronger financial discipline, sustainable capital structures, strategic partnerships and a significantly more conservative approach to leverage.

“The Leonardo represents the future of Sujimoto, but we will approach that future differently. Ambition must be matched by financial discipline. Growth without sustainability is not growth.”

“Pain Is a Gift”

Reflecting on the experience, Ogundele described the past 14 months as one of the most difficult but transformative periods of his entrepreneurial journey.

He said the experience has changed his understanding of debt, liquidity, risk management and the responsibility entrepreneurs owe to employees, customers, suppliers, investors and lenders.

“Pain is a gift. Sometimes success teaches you very little because everything appears to be working. Difficulty forces you to confront your mistakes, rethink your assumptions and become a better entrepreneur.”

He added that one of the biggest lessons for Nigerian entrepreneurs is that borrowing must never be treated as a substitute for sustainable cash flow.

Businesses, he said, must carefully evaluate the cost of capital, repayment timelines, currency exposure and worst-case scenarios before assuming significant debt.

A Commitment to Every Creditor

Ogundele reiterated that Sujimoto is not denying or running away from its legitimate obligations, stressing that the company’s focus is on rebuilding liquidity, completing projects, strengthening operations and systematically settling creditors.

He thanked lenders, clients, employees, suppliers, partners, friends and family members who continued to support the company through the difficult period.

“Trust is more valuable than money. People trusted us with their capital, their homes, their businesses and sometimes their personal savings. We do not take that trust lightly.”

As Sujimoto enters its next phase, Ogundele said the company will emerge more disciplined, more financially prudent and better positioned for sustainable growth.

“Entrepreneurship is not about never falling. It is about having the courage and integrity to stand up, correct your mistakes and honour your commitments. We are still standing. We are still building. We are still delivering.”

He concluded:

“By January 1, 2027, our ambition is to enter a new chapter — stronger, wiser and debt-free. We borrowed. We built. We delivered. We will pay what we owe, and we will rise stronger. Pain is a gift.”