Dayo-Adepoju: Steering BlackCod through Nigeria’s next investment growth

Nigeria’s asset management industry is entering a new phase where investment expertise, innovation and trust may matter more than high interest rates, as declining yields threaten to reduce the returns that have attracted investors in recent years.

This is the view of Ebunoluwa Dayo-Adepoju, managing director of BlackCod Asset Management, who believes the next chapter of growth for Nigeria’s investment industry will be defined not by favourable market conditions but by the ability of fund managers to consistently deliver value in a lower-yield environment.

Speaking in an interview with BusinessDay, Dayo-Adepoju said one of the biggest challenges facing asset managers is yield compression as interest rates gradually moderate after years of elevated returns in fixed-income markets.

“The biggest challenge, frankly, is yield compression. As interest rates normalise or decline from their current highs, fund managers who have been riding the rate cycle will need to work much harder to deliver attractive returns,” she said.

Read also: DisCos bleed N159bn in three months as collection failures deepen

Her remarks come at a time when Nigeria’s wealth management industry has enjoyed significant growth, fuelled by rising inflation, naira volatility and growing awareness of investment opportunities among retail and institutional investors.

For years, high yields on treasury bills, government bonds and other fixed-income instruments provided a relatively straightforward path for fund managers to generate attractive returns. That environment encouraged more Nigerians to move funds away from traditional savings accounts and into professionally managed investment products.

However, industry analysts believe that era may be gradually coming to an end.

As yields soften, fund managers will increasingly be required to demonstrate stronger portfolio management capabilities, deeper market analysis and more innovative investment strategies to maintain investor confidence.

For Dayo-Adepoju, the challenge also presents an opportunity.

She noted that Nigeria remains significantly underserved when it comes to accessible and trustworthy investment products, especially for everyday Nigerians seeking to protect and grow their wealth.

According to her, many potential investors are interested in investing but remain hesitant due to limited financial literacy and concerns arising from years of fraudulent schemes that have eroded public trust.

“There is a lack of accessible, trustworthy investment options for everyday Nigerians. Many potential investors are deterred not by a lack of interest but by a lack of confidence and clarity,” she said.

The trust gap remains one of the defining issues in Nigeria’s investment ecosystem. Several failed investment schemes over the years have made many Nigerians cautious about committing their savings, forcing legitimate operators to place greater emphasis on transparency and investor education.

At BlackCod, Dayo-Adepoju said building credibility has become a central pillar of the firm’s strategy. The company has increasingly shifted from a purely product-driven model to an advisory-focused approach designed to help clients align investments with long-term financial goals.

Its flagship Secure Yield Investment product continues to focus on fixed-income opportunities, but the firm is also investing heavily in customer education and digital engagement as competition intensifies across the sector.

“In an environment where there has been a history of investment fraud and failed schemes, convincing people to trust a relatively young firm with their savings requires consistency, transparency and results,” she explained.

One trend giving Dayo-Adepoju confidence about the industry’s future is the growing participation of younger Nigerians in the investment market.

Unlike previous generations that relied largely on conventional savings and banking relationships, younger investors are increasingly embracing digital financial platforms, mutual funds and other wealth-building products.

She described this shift as one of the strongest growth drivers for the sector.

“I am genuinely excited about the growing financial awareness and appetite among younger Nigerians. They are more engaged, more digitally savvy, and more willing to invest than previous generations,” she said.

The rise of digital-first investors is prompting asset managers to rethink traditional business models. Firms are increasingly deploying technology to improve customer experience, simplify onboarding processes and broaden access to investment opportunities.

For BlackCod, technology will play a major role in its future growth plans. Dayo-Adepoju disclosed that the company intends to strengthen its digital investment channels, expand its product offerings and deepen its presence among institutional investors over the next five years.

The firm is also exploring more diversified investment solutions, including dollar-denominated products designed to help clients hedge against foreign exchange risks.

Demand for such products has increased as investors seek protection from persistent naira volatility and economic uncertainty.

Beyond product innovation, Dayo-Adepoju believes stronger regulation will continue to support industry growth. She welcomed ongoing efforts by Nigeria’s capital market authorities to strengthen compliance standards and improve investor protection.

According to her, enhanced regulatory oversight is critical for restoring confidence and creating a more transparent investment environment.

Read also: Nigeria’s middle class faces silent wealth collapse amid inflation – MD, Blackcod Asset Management

Looking ahead, she expects competition among asset managers to become more intense as investors become more sophisticated and return expectations remain high.

To stay competitive, she said firms will need to strengthen credit analysis capabilities, embrace technology, develop innovative investment structures and maintain disciplined risk management frameworks.

Despite the challenges, Dayo-Adepoju remains optimistic that Nigeria’s asset management industry is only beginning to realise its full potential.

With rising financial literacy, increasing digital adoption and growing awareness of wealth creation opportunities, she believes the sector is positioned for sustained long-term expansion.

“The opportunity is significant. We want to democratise access to quality financial products and make professional wealth management available to a much wider segment of society,” she said.

As Nigeria’s investment landscape evolves, the defining test for fund managers may no longer be attracting investors but consistently delivering value when market conditions become less favourable. For firms such as BlackCod, success in the next growth cycle will depend on their ability to combine trust, innovation and investment expertise in a rapidly changing financial environment.