How luxury wristwatches gained ground as investment assets in Nigeria

Nigerian high-net-worth individuals are turning to luxury wristwatches as a practical store of value amid persistent naira depreciation and inflation. Verafina, founded by Yvonne Okocha in 2013, has positioned itself as a key player in meeting this demand through curated access to Swiss timepieces.

Okocha, who holds an MSc in Luxury Brand Management from the International University of Monaco and a certificate from Harvard Business School, described watches as one component of a broader strategy among affluent Nigerians seeking alternatives to traditional investments.

“People invest in line with their level of knowledge and income,” she said. “For Ultra HNIs, HNIs, and affluent professionals, they are always looking at non-traditional investment avenues like watches, art, gold, that hold or increase in value over time, sometimes even outperforming traditional financial investments.”

Demand remains concentrated among a small segment of wealthy buyers rather than the mass market. Nigerian consumers have become more knowledgeable over the past decade about brands, models, complications, and investment potential. Luxury watches serve multiple purposes: functional status symbols, portable assets, and hedges against currency volatility.

Experts say that key drivers for appreciation in the Nigerian market include brand recognition, scarcity, and economic conditions. Limited availability, long waitlists, discontinued models, and limited editions increase desirability. According to Okocha, because watches are priced in dollars or euros, naira depreciation directly raises their local value. High demand for pre-owned pieces and the “celebrity effect” when public figures are seen wearing specific models also boost prices.

Okocha highlighted the “Holy Trinity” of watchmaking, Patek Philippe, Audemars Piguet, and Vacheron Constantin, along with Rolex and Richard Mille, as brands with strong value retention. Standout models include the Patek Philippe Nautilus, Aquanaut, and Annual Calendar; Audemars Piguet Royal Oak; Vacheron Constantin Overseas; and Rolex Day-Date Presidentials and Cosmograph Daytonas, particularly discontinued references.

Market structure of the luxury watch industry

The global luxury wristwatch industry is highly concentrated. A small number of Swiss manufacturers dominate, with major groups such as Richemont (which owns Cartier, Vacheron Constantin, and others), the Swatch Group, and independent players like Rolex and Patek Philippe controlling supply. This structure creates deliberate scarcity. Brands release limited quantities annually, maintain strict authorised dealer networks, and enforce allocation systems that favour established retailers and long-term clients.

This controlled supply benefits secondary markets, where pre-owned and vintage pieces often trade at premiums. In Nigeria, Verafina operates within this ecosystem by leveraging international networks to source pieces that are difficult to obtain locally. The industry’s emphasis on heritage, craftsmanship, and exclusivity aligns with Nigerian buyers who view watches as both wearable assets and social signals.

Liquidity is another attraction. Quality pieces from top brands can be sold relatively quickly on the global secondary market compared to illiquid assets like real estate. However, this depends on the condition, documentation, and timing.

Risks in the Nigerian context

Okocha emphasised authentication as the primary risk. “Always buy from only a trusted and reputable source with complete documentation and when in doubt, have the watch authenticated by a professional,” she said.

Other risks include price volatility, theft due to the items’ portability, and regulatory hurdles around imports. She advises clients to insure watches, store them securely, and document ownership for estate planning, especially when treating them as heirlooms.

Despite these risks, the combination of functionality and potential appreciation makes watches appealing in Nigeria’s economic environment.

Verafina’s Client Selection and Click-and-Mortar Model

A dedicated subsection of Verafina’s operations focuses on serving a specific clientele. Okocha targets refined, well-travelled buyers who know exactly what they want. Access to inventory is reputation-based rather than purely transactional. “Inventory availability is intentionally and highly restricted,” she explained. “Access is reputation-based, not purely capital-based.”

This approach reflects the broader luxury industry structure, where relationships and trust matter more than open selling. Verafina avoids aggressive traditional marketing and operates on an “IYKYK” (If You Know You Know) basis. Growth relies heavily on word-of-mouth from repeat clients who act as brand advocates.

The company uses a click-and-mortar model: clients discover pieces online via her Instagram account, Verafinaluxury, which serves mainly for cataloguing and brand news, but all sales occur in person. “100 percent of Verafina’s sales are in person,” Okocha said. “Clients want to see, feel, try on the watch, they want to have a conversation about the brands, their heritage, and current news.”

This offline focus enables personalised service, instant gratification, and relationship building, contrasting with the industry’s common delayed gratification model of long waitlists. Verafina also provides concierge-level support, including sourcing limited or discontinued pieces, with a claimed 99 percent success rate. Appointments, private events, and knowledge-based conversations on topics beyond watches help build trust.

Okocha’s background informs this strategy. Early entrepreneurial efforts while studying in Monaco involved sourcing luxury items for family and friends. Corporate experience at Bottega Veneta and media roles at Forbes and CNBC Africa taught her to adapt European practices to the Nigerian market rather than copy them directly.

“Luxury is an identity,” she noted. “When I sell luxury, I am not just selling a high-quality product; I am also selling emotions, identity, status, taste, aspiration, and social signalling.”

Outlook for African luxury retail

Okocha anticipates several shifts over the next decade. These include greater integration of luxury retail with hospitality, fine dining, art, and private banking; growth of African-origin luxury brands; an expanding middle class and younger consumers influenced by social media; and adoption of technology such as AI marketing and real-time cross-border payments.

She sees potential for a pan-African luxury marketplace and increased e-commerce, though Verafina currently maintains its in-person emphasis.

For now, luxury watches remain a niche but growing investment option in Nigeria. Verafina’s model demonstrates how deep market knowledge, strong networks, and client-focused service can succeed within the tightly controlled global luxury watch industry.