Lagos, Nigeria – Nigerian B2B e-commerce startup Alerzo is liquidating its delivery assets, including buses and motorcycles, after a Federal High Court order froze its accounts and assets following a default on a N5 billion (approximately $3.2 million) loan obtained from Moniepoint Microfinance Bank in January 2025.
Okay News reports that videos circulating on social media Thursday showed the company’s Ibadan facility filled with dusty Alerzo-branded vehicles, with a voice urging interested buyers to purchase as many as needed. Sources close to the company attributed the collapse to harsh economic conditions, noting that management tried everything to stay afloat and keep young Nigerians employed but several economic factors worked against them. The outstanding debt stood at N4.38 billion as of December 2025, with interest continuing to accumulate.
The N5 billion loan was intended to stabilise operations and sustain inventory supply to retailers, but repayment challenges emerged within months, highlighting the fragile economics of high-volume, low-margin distribution businesses during macroeconomic volatility. In January, the Federal High Court in Lagos granted Moniepoint a Mareva injunction against Alerzo Limited, its Managing Director Opaleye Adewale Adesina, three guarantors, and a Singapore-based entity, Alerzo PTE Limited, restraining financial institutions from releasing funds linked to the defendants.
Court documents reveal that Alerzo applied for the loan through a board resolution dated January 20, 2025, for working capital requirements. Moniepoint approved the 18-month facility with provisions allowing immediate recall in default. Despite a demand letter issued November 18, the defendants allegedly failed to repay. The court also authorised substituted service on the guarantors and courier service to the Singapore-based defendant.
Founded as a fast-growing B2B commerce platform, Alerzo built a distribution network supplying inventory directly to neighbourhood retailers, bypassing traditional wholesalers. At its peak, the company raised about $20 million in funding and expanded across Lagos, Oyo, Ogun, and other Southwest states, employing hundreds of staff. However, the capital-intensive nature of logistics strained finances, and by 2023, the company initiated layoffs as it struggled with rising operating costs including vehicle maintenance, fuel, driver salaries, and warehousing expenses.
Alerzo’s difficulties reflect broader challenges facing Nigerian startups that expanded rapidly during the 2020 to 2022 venture funding boom but have since struggled amid tighter capital markets and rising costs. Several startups that raised millions during that period have shut down, including 54gene which folded in 2023 and fintech startup Thepeer which closed in 2024 after failing to scale. The story of Alerzo’s startup struggles serves as a cautionary tale about the thin margins and operational challenges in Nigeria’s logistics sector. These startup struggles highlight the need for sustainable business models in challenging economic environments.
 loan obtained from Moniepoint Microfinance Bank in January 2025.){kind=link}