Sujimoto Repays N40bn Debt, Targets Zero Liability by 2027

Sujimoto Holdings, a luxury real estate developer, has repaid over N40 billion in debt and aims to eliminate all outstanding liabilities by January 1, 2027, according to Dr. Sijibomi Ogundele, the company's founder and Group Managing Director. The firm faced a financial crisis that saw it spending N126 million monthly for three years without selling a single property. The company's repayment comes after a prolonged period of borrowing to sustain operations, employee salaries, and project completion obligations.

Ogundele highlighted the dangers of excessive borrowing, which led to monthly overhead costs of N126 million and operational commitments exceeding N500 million. Some loans carried effective costs of up to 100%, exacerbating the company's cash flow challenges. He emphasized that debt was not the problem but rather excessive borrowing, warning entrepreneurs to borrow judiciously.

Despite the hardships, Sujimoto has repaid more than N40 billion to banks and private lenders, with the remaining obligations assured to be settled by the target date. The company's Lucrezia development, which has seen homeowners move into their apartments, stands as proof of its commitment. Ogundele expressed determination to fulfill all commitments, stating, "We borrowed, we built, we delivered, and we will rise stronger."

Looking ahead, Sujimoto plans to adopt stronger financial discipline, sustainable capital structures, and strategic partnerships for future expansions, such as the proposed 69-storey Leonardo residential project. The company's founder acknowledged the past 14 months as the most challenging period of his entrepreneurial career, but emphasized that the experience forced him to reassess his assumptions about debt, liquidity, and business risk.