Sujimoto repays N40bn debt, targets debt-free status by January 2027
By Aboki Forex —
Sujimoto Holdings has repaid more than N40 billion owed to banks and private lenders. Founder and Group Managing Director Dr. Sijibomi Ogundele said the company plans to enter 2027 as a debt-free business.
Ogundele spoke while reflecting on the challenges that have shaken the luxury real estate firm over the past 14 months. He said the experience taught hard lessons about borrowing, cash flow and financial discipline.
No sales for three years
Ogundele said Sujimoto went through a difficult period where it did not sell a single unit for almost three years. This happened even as the company carried monthly overheads of about N126 million and operational commitments exceeding N500 million.
He blamed the pressure on declining purchasing power, inflation, rising construction costs, currency volatility and the challenging business environment. To keep the company running, retain employees, meet supplier obligations and continue projects, Sujimoto borrowed from commercial banks, private lenders, friends, family members and other individuals.
Lessons from the struggle
Ogundele said the experience exposed the dangers of reckless borrowing. He insisted that debt itself is not harmful when properly managed.
“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,” he said.
The company has so far repaid more than N40 billion to banks and private lenders. Ogundele described the repayments as proof of its commitment to honour financial obligations, including those owed to lenders, investors, partners and individuals.
He said: “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.”
Advice for entrepreneurs
Ogundele described the past 14 months as one of the most difficult but transformative periods of his entrepreneurial journey. He said it changed his understanding of debt, liquidity, risk management and the responsibilities entrepreneurs owe employees, customers, suppliers, investors and lenders.
He urged Nigerian entrepreneurs to stop treating borrowing as a substitute for sustainable cash flow. He advised business owners to carefully consider the cost of capital, repayment timelines, currency exposure and worst-case scenarios before taking on significant debt.
Ogundele said Sujimoto will emerge from the period more disciplined, financially prudent and better positioned for sustainable growth.