By Anthony Iwuoma
Looking at Mr. Edward Akinlade, Group Managing Director of Suru Group of Companies, one could see success personified. The man exudes so much confidence like a master on familiar turf. Suave, urbane and cool, Akinlade is a big player in Real Estate and hospitality business. He is behind Best Western Hotel, the big brand on Allen Avenue, Ikeja, Lagos, which has been in contention since the Asset Managemnent Company, AMCON, locked it up over a loan deal with the defunct Oceanic Bank. Despite favourable court judgements in his favour, AMCON refused to obey the court orders to vacate the premises and has proceeded on appeal to the Supreme Court. However, Akinlade, who was relunctant to talk on a matter before the courts, is not unduly bothered, as he trusts in the ability of the Supreme Court to do him justice. In this chat with Anthony Iwuoma, the property czar took a peep into the beginning of his multi-billion naira business empire and also offered useful tips to government on business promotion as well as to startups on how to excel.
How did your journey in business start?
I have been in business for a very long time. In fact, I can say that I have been in business since I was six years old when my mother would put me in her shop at Tejuosho market, Lagos, and go out. So, that has been with me. However, the Real Estate business started in 1990 in the city of London. I returned to Nigeria in 2006 and it was only natural that I continue the same line of business in Nigeria. Hotel business is something that came in later when I discovered that that in the whole of Ikeja there were only about four hotels. So, we invested in two hotels in Ikeja, Best Western and Suru Express. Today, in Ikeja GRA alone, there are over 35 hotels and many more are still under construction. We were at the forefront of that and thanks to God for that. Obviously, that is what led to where we are today and where we want to go next.
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Did you find easy starting?
Starting was not easy. I think we are still here today by the grace of God because many companies that started about the same time with us are no more. God played a significant role in getting us to where we are. My experience coming from the UK into Nigeria, I had the opportunity to be introduced to Mrs. Cecilia Ibru at that time, who supported us immensely with funding, locally and internationally through Oceanic Bank. It was through that, that we built what we have today.
So, what are the challenges you faced?
The challenges were huge. Since we set up, the challenges were tremendous. I will say that I enjoyed Nigeria for two years between 2006 and 2008, even up to 2009. The challenge that happened in 2009 was the takeover of Oceanic Bank by Lamido Sanusi’s CBN, which put a halt to all our funding. Ever since, we have litigation against Oceanic Bank. We’ve been in court; our loan was sold to AMCON. We are still in court. The matter is now heading to Supreme Court for ruling. We thank God.
There are other challenges too. Finding dedicated staff is an issue. The staff are not sincere. It is difficult to find men and women with integrity. Once they see the money, they will change and that is the problem we have getting the right staff. Corruption is another big problem, high interest rate, high inflation, high exchange rate, etc. We started from about N100 to a dollar to where we are today, N365 to a dollar. So, it’s not been easy. Lagos State is not helping matters either, double taxation, triple taxation, even quadruple taxation on the same thing, but the Grace of God has kept us.
What is your niche, how did you succeed where others fell by the wayside?
One of the things I have always liked to do is to be at the forefront of everything I do. By the time others are heading in, I would be heading for the exit. One of the first things we did in those early days was to buy a lot of land in Ikeja GRA and we also built over 56 fine houses in Ikeja GRA. Over the years, we have sold a lot of them and we were able to to liquidate some of our funding to where we are today. We were at the forefront of acquiring some of the property of Nigeria Airways in Ikeja GRA and building of mass luxury apartments and also taking some of our big properties and converting them to smaller plots so as to encourage other people to come. So, we are at the forefront of that and that we are still doing. A lot of people came when they saw what we were doing but we take passion in what we are doing. We are experts in all of that but if you want to come in and join us in this business now, you would require about a billion naira. That has taken a lot of people back to where they were. With regard to the hotel, we intended to build two-star, three-star, budget hotels. That was the initial plan but like I said, too many people have come into that industrry now. We are still looking at it; and the only way to survive in the business now is to be able to find what I will call equity funding. Most of the people who borrowed money for hotel business in nigeria have found out that, that business is no longer sustainable and that is why many, even big hotels are on the market because the funding being used is wrong funding; you cannot borrow to do this kind of business. You cannot borrow to invest in this kind of business. You need equity but as you know, the Nigeria Stock Exchange is flat on its belly at the moment. Our secret or niche is to be at the forefront through innovation and efficient funding model.
Your case with AMCON has dragged for long but despite your successive triumphs in court, AMCON did not obey the court orders; why is that?
You have to ask AMCON that question. I don’t have an answer to why they are not obeying court orders or taking such a step. My belief is that if not for national security, government agency ought not go to Supreme Court. What are they trying to achieve? Anyway, that is where we have found ourselves. We have won our cases from Appeal Court and Federal High Court and we are confident that the Supreme Court will also rule in our favour. I cannot talk on the matter but without delving into it, as that would be subjudice, the rule of law will prevail. We are standing on that rule of law and I know that is exactly what will happen at the end of the day.
Are you still involved in philanthropy?
Yes, we are still very much involved. We have been supporting Bell of Mercy Orphanage monthly. We also give assistance to widows to start business on monthly basis. Also, we invested in a microfinance bank where we offer esusu loan. Also, whenever people approach us for support, medical or otherwise, we try to see what could be done to help them.
Considering all that you have passed through, especially in the hands of AMCON, do you have any regrets returning to Nigeria?
Definitely no. I don’t regret coming back to Nigeria to do business. The reason is that I had a calling while in London to come back to Nigeria and invest. It was not in flesh but in the spirit. I knew that as I was leaving the UK for Nigeria, satan was also leaving to say Akinlade, you will not succeed. So, what I have faced since 2009 is satan at work but at the end of the day, there can be only one winner in all this – David. Goliath can never win. I’m quite confident that God will see me through.
You sound very spiritual, almost like a pastor… are you a pastor?
Yes, it is the spirit that moved me to Nigeria. but I am not a pastor. I just followed my own calling and I am convinced about it. As for people who go into the ministry claiming God’s calling, they have to convince people that God actually called them. Otherwise, if there is no calling, there will be trouble.
What’s your advice to government to support businesses?
My advice to government is that government has no business in business. They should provide enabling environment for businesses to thrive. Even if they insist on doing business, let it take part equity in organisations that will manage it out for them instead of managing it themselves. Look at the Nigerian Liquified and Natural Gas, NLNG, where government had equity and allowed the private sector management; it turned out very successful. Government is making a lot of money. But when it runs a business, it runs it aground. They should go away from business if they still have any, they should sell it and go away. Government should create conducive environment for companies to thrive through single inflation, lower taxation, effective regulatory agencies, and such like.
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Do you have any advice for statups?
It is tough time for startups. It has been established that 95 per cent of all businesses in Nigeria fail within the first year. However, if God sends you, you will succeed. They should not go into, say Real Estate, because they see Akinlade is in it. It does not work that way because they don’t know what Edwin Akinlade is facing. I encourage them to take the risk. It is a matter of risk and reward. You take the risk, you get the reward. Without taking risk, there will be no reward. They can also employ more people. I want more startups instead of people roaming all over the place looking for jobs that are not there.
Are you fulfilled in your business?
Yes, I am fulfilled. I find my business rewarding. It pays my bills and I pay my staff salaries. I am more than fulfilled because it is like I told you a calling that I am treading upon. So, no matter what satan is throwing at me, I know somebody is fighting the battle for me.
So, where do you see Suru Group in the next five, ten years?
Firstly, in five years time, I want to access, at least, a billion dollars equity funding so that I won’t have to pay interest but only pay back on the profit. In Real Estate, I want to build a lot of affordable houses. I look forward to building a minimum of 100,000 houses every year to support the unemployed in nigeria. then, maybe 1000 houses for the middle income earners and 100 luxury homes in places like in Banana Island and Eko Atlantic city.
As for hotels, I am not happy with what I see. The reason is that quality of service in our hotels is not good because we lack quality of staff. If you train them, they are the same; even if you pay them more, they are the same. Corruption in our DNA has affected what we are doing in our hotel industry. So, do I want to own more hotels in Nigeria? No, I doubt it. I just want to focus more on my Real Estate business but partner with international hotel brands to manage our existing hotels. But, you never know…
