Why Investors Chose Dollar Over Naira Investments Despite Signs of Economic Recovery – Lukefield Finance CEO

Despite recent signs that Nigeria’s economy may be turning a corner, many investors are still cautious. According to Omotayo Asupoto, Chief Executive Officer of Lukefield Finance Company, the preference for dollar-denominated investments over naira assets was largely driven by rising interest rates and exchange-rate volatility. As inflation surged and the naira weakened, investors naturally sought protection by moving their funds into foreign currency, a move she described as rational during periods of uncertainty.

Asupoto noted that while economic data now points to gradual improvement—such as easing inflation, stabilising interest rates, and a more predictable foreign exchange market—the impact has not yet filtered down to everyday Nigerians. She explained that economic recovery is rarely instant, stressing that confidence takes time to rebuild after prolonged instability. “These changes don’t happen overnight,” she said, adding that patience remains critical for a meaningful rebound.

The Lukefield boss also highlighted the role finance companies play in supporting small and medium-sized enterprises (SMEs), especially where traditional banks fall short. Positioned between commercial banks and microfinance institutions, finance companies like Lukefield offer faster decision-making, flexible credit structures, and personalised assessments. This has enabled SMEs—many without heavy collateral or audited accounts—to access funding that keeps their operations running even during tough economic cycles.

With stability slowly returning, Asupoto revealed that investor behaviour is beginning to shift again. As exchange rates stabilise and monetary tightening eases, more investors are reconsidering naira-based investments, particularly for short- to medium-term tenures. She added that business activity across sectors such as oil and gas, manufacturing, and logistics has improved, signalling renewed confidence among operators and lenders alike.

Looking ahead, Asupoto expressed optimism about Nigeria’s economic prospects in 2026, describing the current phase as a transition from stability to growth. She pointed to tax reforms, stronger governance, and increased accountability as factors that will unlock new opportunities across industries. For investors and businesses willing to plan ahead and operate transparently, she believes the coming years could mark the start of a more resilient and inclusive economic recovery.

source: Punch