“I Have Learnt the Hard Way”: Nigerian Billionaire Businessman Opens Up on N40bn Debt Crisis
- Sujimoto Holdings says it has repaid more than N40 billion to banks and private lenders and plans to become debt-free by January 2027
- Founder Sijibomi Ogundele said the company faced severe financial pressure due to weak sales, inflation, rising construction costs, amongst others
- He said the experience taught the company valuable lessons about responsible borrowing, cash flow and financial discipline
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Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Sujimoto Holdings has announced plans to become debt-free by January 1, 2027, after repaying more than N40 billion owed to banks and private lenders.
Founder and Group Managing Director of the company, Dr. Sijibomi Ogundele, disclosed this while reflecting on the challenges faced by the luxury real estate firm over the past 14 months.
Source: UGC
Sujimoto highlights lessons from a difficult period
According to Guardian, Ogundele said the experience highlighted the dangers of reckless borrowing, stressing that debt itself was not necessarily harmful when properly managed.
He said:
“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.”
According to him, Sujimoto went through a difficult period during which the company did not sell a single unit for almost three years, despite having monthly overheads of about N126 million and operational commitments exceeding N500 million.
He attributed the financial pressure to declining purchasing power, inflation, rising construction costs, currency volatility and the challenging business environment.
To keep the company operating, retain employees, meet supplier obligations and continue construction projects, Ogundele said Sujimoto borrowed from commercial banks, private lenders, friends, family members and other individuals.
Sujimoto's repayment and debt-free Ambition
Ogundele said the company had so far repaid more than N40 billion to banks and private lenders, describing the repayments as evidence of its determination to honour its financial obligations.
He stressed that the commitment also covered lenders, investors, partners and individuals whose legitimate obligations remained outstanding.
According to him, the company’s immediate objective is to settle its outstanding legitimate debts and enter 2027 as a debt-free business.
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.”
Sujimoto shares advice for entrepreneurs
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 had changed his understanding of debt, liquidity, risk management and the responsibilities entrepreneurs owe employees, customers, suppliers, investors and lenders.
Source: UGC
He urged Nigerian entrepreneurs to avoid 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 would emerge from the period more disciplined, financially prudent and better positioned for sustainable growth.
Source: Legit.ng
