Nigeria’s business to business e commerce startup Alerzo has been thrust into a high profile legal and financial dispute after a $3.7 million debt disagreement triggered a court ordered freeze on its accounts and assets, highlighting mounting pressure across Africa’s once booming venture backed tech ecosystem.
The dispute stems from a ₦5 billion loan facility extended by Moniepoint Microfinance Bank in January 2025 to support Alerzo’s working capital and inventory operations. According to court filings, the outstanding obligation stood at ₦4.38 billion as of December 3, 2025, with interest continuing to accrue. In January 2026, the Federal High Court in Lagos granted a Mareva injunction, restraining financial institutions from releasing funds linked to Alerzo and associated parties pending the outcome of the case.
The loan, structured with an 18 month tenor, was designed to stabilise supply chains and finance inventory distribution to Alerzo’s network of neighbourhood retailers. However, repayment challenges emerged within months, underscoring the strain faced by high volume, low margin distribution businesses operating in Nigeria’s volatile economic climate. Currency depreciation, rising fuel prices and tightening liquidity conditions have combined to increase operating costs for asset heavy startups.
Speculation intensified after videos circulated on social media showing rows of Alerzo branded motorcycles and buses parked at its Ibadan facility, prompting concerns that the company was liquidating assets. Chief Executive Officer Adewale Opaleye denied that core operating vehicles were being sold, stating that only scrap assets were being disposed of and that more than 400 vehicles remain in active service. He maintained that operations continue and that the asset sales are unrelated to the ongoing debt proceedings.
Founded in 2019, Alerzo positioned itself as a technology enabled distributor linking fast moving consumer goods manufacturers directly with informal retailers. By integrating digital ordering, payments and last mile logistics, the company sought to improve efficiency and reduce pricing disparities within Nigeria’s fragmented retail ecosystem. During Africa’s venture capital surge between 2020 and 2022, Alerzo raised more than $20 million in equity funding from investors including Nosara Capital, FJ Labs, Baobab Network and Signal Hill.
Following a $10.5 million Series A round, the company expanded aggressively across south west Nigeria. While it reported breakeven in the third quarter of 2021 when operating in two cities, broader expansion significantly increased fixed costs related to vehicles, warehousing, staffing and fuel. Between 2022 and 2024, Alerzo undertook multiple rounds of layoffs, reducing its workforce from over 2,000 employees to fewer than 800 as it sought to contain costs.
The company’s predicament reflects a wider correction in Africa’s startup ecosystem as global venture capital inflows slow and investors shift focus from rapid expansion to profitability and cash flow discipline. Asset intensive business models, particularly in logistics and distribution, have been especially vulnerable to currency swings and rising input costs.
Broader corporate distress trends across the continent reinforce this context. In South Africa, data from Statistics South Africa showed that 96 businesses were liquidated in the opening weeks of 2026, with significant concentration in finance, real estate and business services. The logistics sector has also faced mounting pressure, reflecting common challenges linked to fuel volatility and constrained credit markets.
Alerzo’s legal battle and restructuring efforts now stand as a bellwether for Africa’s technology sector, where the emphasis is shifting from growth at all costs to sustainable operations. The outcome of the court proceedings and the company’s ability to stabilise its balance sheet will likely influence investor confidence in Nigeria’s business to business commerce segment at a time when capital discipline is increasingly paramount.
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