Real Estate Sector Battles Liquidity Crisis

The founder of GText Holdings, Stephen Akintayo, has said that liquidity challenges remain one of the biggest threats confronting operators in Nigeria’s real estate sector.

Akintayo disclosed this in Lagos during a news conference held over the weekend as part of activities marking the company’s 18th anniversary.

According to him, the structure of real estate investments often ties down capital for long periods, making it difficult for firms to maintain adequate cash flow.

He said, “Real estate is structured in a way where capital is tied down for a long time. If you don’t trade and have other businesses you can take on, you will have liquidity problems.”

The real estate entrepreneur noted that several operators had faced similar challenges in recent years, stressing that not every struggling company deliberately set out to defraud investors.

“We have had our own fair share of liquidity issues. A lot of our colleagues also went through those liquidity challenges,” he said.

He added, “Not all real estate companies are trying to play games. Many have liquidity issues and are trying to unlock liquidity in ways that did not work out as planned.”

Akintayo said the company was responding to the challenges in the sector through diversification into agriculture, renewable energy, security technology, e-commerce and artificial intelligence-driven businesses.

According to him, the firm’s new strategy includes Ginido, a green energy and security solutions venture, and GText Farms, which focuses on agricultural land banking and commercial farming.

“We are responding to the challenge through aggressive diversification into agriculture, renewable energy, e-commerce, security technology and artificial intelligence-driven businesses,” he said.

He added that the company was also restructuring to attract institutional investors as part of its expansion plans.

“We built this company largely without relying on bank loans. Going forward, we are restructuring to begin attracting institutional investors,” Akintayo added.

The GText founder further disclosed plans to expand into private security solutions through partnerships with major CCTV manufacturers in China, adding that the company intended to begin assembling security cameras locally before eventually producing them in Nigeria.

Speaking on artificial intelligence, Akintayo said the company had achieved over 50 per cent AI adoption among its workforce.

“For us, AI is not optional. One person can now do the work of 20 people by leveraging AI,” he said.

He, however, warned that the technology could significantly reduce white-collar jobs globally.

“I project that about 70 per cent of white-collar jobs will disappear. That is why young people must embrace practical and entrepreneurial skills,” he said.

Akintayo said the company had also trained realtors as part of its anniversary activities to improve professionalism in the real estate industry.

The four-day programme, he said, focused on digital marketing, land titling, deal closure strategies and global real estate opportunities.

Also speaking, the Deputy Group Chief Operating Officer of GText Holdings, Farouq Usman, said the anniversary featured a Developers and Investors Conference and Exhibition aimed at exposing participants to opportunities in property investment and land banking.

An entrepreneur and founder of Pamtech Group, Ndubisi Chidomere, urged estate developers to embrace innovation and future-oriented approaches to property development. He also underscored the role of the media in promoting growth and development in the real estate sector.

Meanwhile, an industry expert, Eizu Uwaoma, advised aspiring entrepreneurs against taking loans to start real estate businesses, warning that high interest rates could threaten sustainability and long-term growth.

He noted, however, that borrowing could be considered when a business had attained stability and profitability.