Sujimoto CEO Advocates for Strategic Industrial Expansion in Nigeria
Dr. Sijibomi Ogundele, the Group Managing Director of Sujimoto Group, has issued a compelling call to President Bola Ahmed Tinubu, urging the adoption of deliberate policies to cultivate multiple large-scale industrialists in Nigeria. In an open letter marking his birthday, Ogundele emphasized that the nation's economic future cannot rely on a single dominant player and must instead focus on creating a robust cohort of industrial champions.
Learning from Global Economic Models
Ogundele drew inspiration from international examples to bolster his argument. He highlighted South Korea's post-1961 economic strategy under Park Chung-hee, where the government actively supported a select group of local entrepreneurs through cheap credit, policy protection, and capital access. This approach, known as the "chaebol" model, gave rise to global giants such as Samsung, Hyundai, LG, SK Group, and Kia. Similarly, he referenced China's transformation under Deng Xiaoping, driven by state-engineered industrial growth, long-term investments, and consistent policy backing for domestic enterprises.
In Nigeria, Ogundele noted that similar strategies were employed during former President Olusegun Obasanjo's administration, which created favorable conditions for the emergence of the Dangote Group as a national industrial leader. He pointed out that the Dangote Group now contributes over N900 billion in annual taxes, employs tens of thousands, and serves as a critical anchor for industrial stability. Without initiatives like the Dangote Refinery, he warned, diesel prices could have surged to approximately N3,000 per litre.
The Need for Replication and Scale
Ogundele stressed that Nigeria's primary challenge is not a lack of capacity but the failure to replicate such success on a larger scale. "One Dangote can stabilise a sector; ten can stabilise an economy," he stated, advocating for deliberate industrial expansion to reduce costs of essential goods like rice and cement through economies of scale. He outlined Sujimoto Group's own transition from luxury real estate into broader sectors, including large-scale housing, agriculture, and industrial production, with plans to deliver over 5,000 homes annually via a Smart City model across Nigeria's six geopolitical zones.
Additionally, the company aims to expand from 50,000 hectares of agricultural production to one million hectares within a decade, alongside ventures into vegetable oil production. Ogundele also highlighted TAJBank, founded by Hamid Joda, as an example of how targeted support can foster job creation and economic stability, noting it now employs over 5,000 people despite initial funding hurdles.
Addressing Structural Challenges
The Sujimoto boss lamented the fragmented system facing Nigerian entrepreneurs, constrained by high interest rates, erratic power supply, currency volatility, and limited access to long-term financing. He disclosed that his company had faced significant financial pressures, with debts exceeding N40 billion at one point, though over 80% has been repaid. Workforce numbers had also dwindled from over 1,000 to fewer than 500 due to economic conditions, reflecting a structural gap in Nigeria's financial system where banks prioritize short-term lending over the patient capital required for industrial development.
"We have the raw material and the ambition, but what we lack is a deliberate policy instrument," Ogundele asserted, proposing a "10 Industrialists Strategy." This initiative would involve the Federal Government identifying and supporting high-capacity entrepreneurs across key sectors such as manufacturing, food production, energy, fintech, pharmaceuticals, cement, housing, and the deep-sea economy.
Call for Policy Shifts and Strategic Protection
Ogundele called for targeted tariffs and strategic protection to shield local industries from unfair competition, drawing parallels with China's support for firms like Huawei. He emphasized that small and medium enterprises alone cannot drive large-scale industrial transformation, as critical infrastructure and continental trade ambitions require strong industrial anchors. He urged the Tinubu administration to transition from a regulatory role to an active architect of domestic industrial power, aligning with its Renewed Hope agenda.
"This is not about favouritism but strategic concentration in service of national development. The goal is not just to create billionaires, but to build engines of growth that will employ millions, generate significant tax revenue, and stabilise the economy," he explained. Ogundele further called on the President to convene leading entrepreneurs and industrialists to develop a coordinated strategy for scaling Nigeria's economic capacity.
In conclusion, he reinforced the urgency of this approach: "The lesson across serious economies is clear: nations that rise do not wait for wealth; they create it. Nigeria has seen what one industrial champion can achieve. The task now is to replicate that success at scale."
