Why Many Real Estate Firms Collapse….. Gtext Founder Stephen Akintayo Reveals Liquidity Crisis at 18th Anniversary
Dr. Stephen Akintayo, Founder of Gtext Holdings, has identified liquidity challenges as one of the biggest reasons many real estate companies in Nigeria struggle to survive.
Akintayo made this known during a press conference in Lagos held as part of activities commemorating the 18th anniversary of the global real estate and technology conglomerate.
According to him, the nature of the real estate business often locks down capital for extended periods, making it difficult for operators to maintain healthy cash flow unless they diversify into other profitable ventures.
“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,” he said.
The Gtext founder noted that several operators in the sector had faced similar financial challenges over the years, stressing that not all struggling real estate companies intentionally 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,” Akintayo stated.
“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,” he added.
Speaking on the company’s growth trajectory, Akintayo said the 18th anniversary marked a turning point for Gtext Holdings. He explained that while the company spent its first seven years in bulk SMS and digital marketing and the next decade in real estate, the next phase would focus on global diversification.
He disclosed that the company was expanding into agriculture, renewable energy, e-commerce, security technology, and artificial intelligence-driven businesses.
According to him, the diversification strategy includes Ginido, a green energy and security solutions company linked to China, as well as 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.
Akintayo further revealed that the company was restructuring to attract institutional investors and strengthen its global expansion drive.
“We built this company largely without relying on bank loans. Going forward, we are restructuring to begin attracting institutional investors,” he said.
As part of its expansion plans, Gtext Holdings is also venturing into private security solutions through partnerships with major CCTV manufacturers in China.
“We are partnering with major CCTV manufacturers in China. The plan is to begin assembling security cameras locally before eventually producing them in Nigeria,” he disclosed.
He explained that the security arm of the business would deploy AI-powered surveillance systems, body cameras, and emergency response technologies to support private security operations.
On the growing impact of Artificial Intelligence, Akintayo disclosed that Gtext Holdings had already achieved over 50 percent AI adoption within its workforce.
“For us, AI is not optional. One person can now do the work of 20 people by leveraging AI,” he said.
However, he warned that AI could drastically reduce white-collar jobs across the world.
“I project that about 70 percent of white-collar jobs will disappear. That is why young people must embrace practical and entrepreneurial skills,” he cautioned.
As part of the anniversary celebration, Akintayo said the company organised training programmes for realtors to improve professionalism in the industry.
The four-day training focused on digital marketing, land titling, deal closure strategies, and global real estate opportunities.
He added that Gtext Holdings also embarked on Corporate Social Responsibility initiatives through the distribution of fuel and cooking gas to over 1,000 beneficiaries in Epe, Lagos, and Abuja to cushion the effects of rising fuel costs.
“We partnered with Rainoil and Petrocam to distribute fuel and cooking gas. So far, over 1,000 Nigerians have benefited from the intervention,” he added.
Also speaking at the event, the Deputy Group Chief Operating Officer of GText Holdings, Mr. Farouq Usman, said one of the highlights of the anniversary celebration was the Developers and Investors Conference and Exhibition.
According to him, the programme featured a four-day site training for aspiring realtors aimed at raising professional standards and exposing participants to opportunities in property investment and land banking.
Entrepreneur and CEO of Pamtech Group, Mr. Ndubisi Chidomere, urged estate developers to embrace innovation and future-focused concepts to ensure buildings remain relevant and functional for years to come.
He also stressed the importance of the media in promoting the real estate sector through visibility, education, and industry development.
Similarly, industry expert Mr. Eizu Uwaoma advised aspiring entrepreneurs against taking loans to start real estate businesses, warning that high bank interest rates could threaten sustainability and long-term growth.
He, however, noted that borrowing could be considered for expansion after a business had achieved stability and profitability.