How would one achieve this sound...?

I wouldn't call that lofi at all. It's a sparse arrangement but that's about it. Sounds like typical acoustic guitar recording, Percussion sounds like they're tapping on a guitar body and a tamborine. I think the technique here is just to use mics on real sources and not samples.
 
I think you're probably right after having another couple of listens. The reverb on the vocals...it's not natural reverb is it? D'you think I could replicate it with something like an Alesis Nanoverb?
 
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