Sujimoto Holdings founder and Group Managing Director, Sijibomi Ogundele, has opened up about the financial difficulties that pushed his luxury real estate company into a major debt crisis, saying the experience taught him hard lessons about borrowing, cash flow and financial discipline.
Ogundele disclosed that Sujimoto has repaid more than ₦40 billion owed to banks and private lenders and is targeting a completely debt-free position by January 1, 2027.
According to him, the company experienced a difficult period lasting about 14 months, during which declining purchasing power, inflation, rising construction costs and currency volatility placed significant pressure on its operations.
He said the company went for almost three years without selling a single unit, despite maintaining monthly overhead costs of about ₦126 million and operational commitments exceeding ₦500 million.
To sustain its operations, retain employees, meet supplier obligations and continue ongoing construction projects, the company borrowed from commercial banks, private lenders, friends, family members and other individuals.
Ogundele said the experience changed his understanding of debt and the importance of maintaining sufficient cash flow in business.
He warned entrepreneurs against relying excessively on borrowed funds without carefully considering repayment obligations and the potential risks associated with changing economic conditions.
The businessman stressed that borrowing is not necessarily harmful to a company when properly managed. However, he said irresponsible borrowing could create serious problems even for businesses with strong growth prospects.
He described the period as one of the most challenging stages of his entrepreneurial career but said it also provided important lessons that would help strengthen the company going forward.
Ogundele said Sujimoto remains committed to settling its outstanding legitimate financial obligations to lenders, investors, partners and other stakeholders.
He explained that the repayment of more than ₦40 billion represents part of the company’s effort to honour its commitments and rebuild financial stability.
The company’s immediate goal, he said, is to settle its remaining legitimate debts and begin 2027 without outstanding debt obligations.
The development comes amid a challenging operating environment for businesses in Nigeria, where inflation, currency fluctuations and rising costs have placed pressure on companies across different sectors.
The real estate industry has been particularly affected by increasing construction costs and changes in consumers’ purchasing power.
For developers, these pressures can affect project completion, sales and the ability of customers to purchase properties.
Ogundele said the experience has made Sujimoto more financially disciplined and cautious about future borrowing.
He advised entrepreneurs to examine the cost of capital, repayment timelines, currency exposure and possible worst-case scenarios before taking on substantial debt.
He also emphasised the importance of liquidity and sustainable cash flow rather than treating borrowing as a permanent substitute for internally generated revenue.
The businessman expressed confidence that Sujimoto would emerge from the crisis stronger and better positioned for sustainable growth.
His disclosure provides an insight into the financial pressures that businesses can face during periods of economic uncertainty and the importance of responsible financial management.
With its repayment programme continuing, the company is now targeting January 2027 as the point at which it hopes to become completely debt-free.
