Sujimoto Holdings has repaid more than ₦40 billion to banks and private lenders and pledged to settle all legitimate outstanding obligations, following a prolonged period of financial pressure in Nigeria’s luxury real estate market.
Founder and Group Managing Director of the company, Dr Sijibomi Ogundele, disclosed this in a statement on Monday while reflecting on the challenges the company faced amid declining purchasing power, inflation, rising construction costs, currency volatility and weak demand.
Ogundele said the experience demonstrated the dangers of expensive borrowing, particularly when businesses take on debt without adequate safeguards against changing economic conditions.
“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.
According to him, Sujimoto went almost three years without selling a single unit while maintaining about ₦126 million in monthly overheads and more than ₦500 million in operational commitments.
He said the company subsequently borrowed from commercial banks, private lenders, friends, family members and other individuals to retain employees, meet supplier obligations and continue its construction projects.
Some of the facilities, he said, eventually carried effective costs of up to 100 per cent, putting further pressure 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,” Ogundele said.
Despite the financial difficulties, Ogundele said the company had repaid more than ₦40 billion to banks and private lenders.
He stressed, however, that the repayment did not mean all creditors had been settled, assuring those with legitimate outstanding claims that the company remained committed to paying them.
“We acknowledge our obligations, we appreciate your patience, and we remain unequivocally committed to paying every legitimate debt,” he said.
Ogundele said the company intended to settle its outstanding 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,” he said.
He also cited the completion and handover of Lucrezia, with homeowners now taking possession of their apartments, as evidence of the company’s determination to fulfil its commitments despite the financial strain.
“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,” he said.
Ogundele said the experience had also influenced the company’s approach to its proposed 69-storey Leonardo luxury residential development.
He said future expansion would prioritise stronger financial discipline, sustainable capital structures and strategic partnerships rather than aggressive borrowing.
“Ambition must be matched by financial discipline. Growth without sustainability is not growth,” he said.
Reflecting on the experience, Ogundele described the past 14 months as one of the most difficult periods of his entrepreneurial career, but said it had changed his approach to debt, liquidity and risk management.
“Pain is a gift. Difficulty forces you to confront your mistakes, rethink your assumptions and become a better entrepreneur,” he said.
He thanked lenders, clients, employees, suppliers and other stakeholders for their support, stressing that the company would focus on rebuilding liquidity, completing projects and systematically settling its creditors.
“By January 1, 2027, our ambition is to enter a new chapter — stronger, wiser and debt-free,” he said.
