Sujimoto Holdings has said it is targeting a debt-free status 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 company over the past 14 months.

Ogundele said the experience had underscored the dangers of reckless borrowing, stressing that debt itself was not necessarily harmful to a business if properly managed.

“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 through a difficult period during which the company did not sell a single unit for almost three years, despite carrying about N126 million in monthly overheads and more than N500 million in operational commitments.

He attributed the pressure to declining purchasing power, inflation, rising construction costs, currency volatility and the challenging operating environment.

Ogundele said the company borrowed from commercial banks, private lenders, friends, family members and other individuals to retain employees, meet supplier obligations and continue construction projects.

He, however, said some of the facilities became extremely expensive, with the effective cost of certain borrowings reaching as high as 100 per cent.

“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. We chose to keep building rather than abandon our obligations.”

Ogundele said Sujimoto had so far repaid more than N40 billion to banks and private lenders, describing the repayments as evidence of the company’s determination to honour its financial obligations.

He stressed that the commitment extended to lenders, investors, partners and individuals whose legitimate obligations to them remained outstanding.

His words: “This message is not only for those we have repaid. More importantly, it is for every lender, partner and individual whose money remains outstanding. We acknowledge our obligations, we appreciate your patience, and we remain unequivocally committed to paying every legitimate debt.”

He said the company’s objective was to settle its outstanding legitimate obligations and become debt-free by January 1, 2027.

He said: “By the grace of God, we will repay every outstanding debt and obligation. We borrowed. We built. We delivered. And we will rise stronger.”

Ogundele also cited the completion and handover of Lucrezia as a major milestone in the company’s recovery, saying homeowners had begun taking possession of their apartments and furnishing them.

He said completing the project amid financial pressure demonstrated the company’s determination to fulfil its commitments.

“There were moments when walking away would have been easier. But we understood that 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 company was also redesigning its approach to The Leonardo, its proposed 69-storey luxury residential tower envisioned to become Africa’s tallest residential building.

He said the experience of the past few years would influence the project’s financing, development and execution strategy.

According to him, future expansion would be driven by stronger financial discipline, sustainable capital structures, strategic partnerships and a more conservative approach to leverage.

“The Leonardo represents the future of Sujimoto, but we will approach that future differently. 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 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.

“Pain is a gift. Sometimes success teaches you very little because everything appears to be working. Difficulty forces you to confront your mistakes, rethink your assumptions and become a better entrepreneur,” he stated.

He urged Nigerian entrepreneurs to avoid treating borrowing as a substitute for sustainable cash flow, stressing the need to evaluate the cost of capital, repayment timelines, currency exposure and worst-case scenarios before taking on significant debt.

Ogundele reiterated that Sujimoto was not denying or running away from its legitimate obligations, saying the company’s focus was on rebuilding liquidity, completing projects, strengthening operations and systematically settling creditors.

He thanked lenders, clients, employees, suppliers, partners, friends and family members who continued to support the company through the difficult period.

“Trust is more valuable than money. People trusted us with their capital, their homes, their businesses and sometimes their personal savings. We do not take that trust lightly.”

He said Sujimoto would emerge from the period more disciplined, financially prudent and better positioned for sustainable growth.

He adds: “Entrepreneurship is not about never falling. It is about having the courage and integrity to stand up, correct your mistakes and honour your commitments. We are still standing. We are still building. We are still delivering.

“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.”