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The founder and Group Managing Director of Sujimoto Holdings, Sijibomi Ogundele, has said the company has repaid more than N40 billion owed to banks and private lenders.
Ogundele disclosed this while reflecting on the financial difficulties faced by the company amid rising inflation, construction costs, currency volatility and declining purchasing power.
“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.
He said the company had struggled for almost three years without selling a unit while maintaining monthly overheads and other operational commitments.
According to him, the financial pressure forced the company to obtain loans from commercial banks, private lenders and individuals to sustain its operations and ongoing projects.
He noted that some of the loans eventually became expensive, with the effective cost of certain borrowings reaching about 100 per cent.
Ogundele said the company has since repaid more than N40 billion and remains committed to settling its legitimate outstanding obligations.
He added that the company is targeting January 1, 2027, as the date by which it hopes to become debt-free.
He also disclosed that the Lucrezia project has been completed, with homeowners beginning to take possession of their apartments.
Ogundele said the financial difficulties had prompted the company to reconsider its approach to borrowing and future expansion, particularly regarding its proposed 69-storey Leonardo project.
He said the company would adopt a more cautious approach to borrowing and focus on financial discipline and sustainable funding.
Reflecting on the experience, Ogundele described the period as one of the most difficult phases of his entrepreneurial journey, saying it had changed his approach to debt, liquidity and risk management.
He advised business owners to carefully consider the cost of borrowing, repayment timelines, currency risks and potential adverse economic conditions before taking on significant debt.
