Nigeria’s B2B e-commerce startup Alerzo faces .7 million debt showdown as African liquidations rise
In a sobering turn of events for Africa’s venture-backed startup ecosystem, Nigeria’s B2B e-commerce company Alerzo has found itself embroiled in a significant financial crisis. The company is currently facing a $3.7 million debt dispute that has escalated to court action and the freezing of its assets.
Background on Alerzo
Founded in 2019, Alerzo is a technology-driven distributor that connects manufacturers of fast-moving consumer goods directly with informal retailers. The company aimed to enhance pricing efficiency and inventory access for small shops through digital ordering, payments, and last-mile logistics.
Financial Troubles and Debt Dispute
The financial woes for Alerzo began with a loan of ₦5 billion (approximately $3.7 million) from Moniepoint Microfinance Bank, approved in early 2025 to support working capital. However, as of December 3, 2025, the company’s outstanding obligation had ballooned to ₦4.38 billion (around $3.2 million) due to accruing interest and repayment difficulties.
In January 2026, the Federal High Court in Lagos issued a Mareva injunction, which effectively froze Alerzo’s accounts and assets. This legal action was taken pending the resolution of the dispute regarding the loan. The court’s decision has raised concerns about Alerzo’s operational viability and its ability to navigate the current economic landscape.
Growth and Expansion Challenges
Alerzo experienced rapid growth during the venture capital boom between 2020 and 2022, raising over $20 million in funding from various investors, including Nosara Capital and FJ Labs. Following a successful $10.5 million Series A funding round, the company expanded aggressively across southwestern Nigeria.
However, this rapid expansion came with high fixed costs and margin pressures, particularly in Nigeria’s volatile economic environment. Despite achieving breakeven in the third quarter of 2021 while operating in two cities, the nationwide expansion led to increased operational costs amid rising fuel prices, currency depreciation, and declining consumer demand.
Speculation and CEO Response
Recent videos circulating on social media showing rows of Alerzo-branded motorcycles and buses parked at their Ibadan facility sparked speculation about potential liquidation of the company’s assets. In response, CEO Adewale Opaleye clarified that the company is not liquidating its operational fleet but is instead selling scrap assets. He emphasized that Alerzo still has over 400 vehicles actively in service.
Broader Context of Corporate Distress in Africa
Alerzo’s situation is not an isolated case but rather part of a larger trend of rising corporate distress across Africa. While specific data on liquidations in Nigeria is scarce, reports indicate that South Africa has seen a significant number of business closures. In January 2026 alone, nearly 100 businesses were liquidated, with a notable concentration in the finance, insurance, real estate, and business services sectors.
The logistics and transport sectors are particularly hard-hit, with companies like Flexi Fuel Logistics facing provisional liquidation and others, such as RTT, grappling with severe profitability challenges. These developments reflect the broader economic pressures impacting asset-heavy businesses across the continent, including fluctuating fuel prices, currency volatility, and tightening credit conditions.
Conclusion
Alerzo’s financial challenges underscore the difficulties faced by many startups in Africa’s evolving economic landscape. As the company navigates its debt dispute and attempts to stabilize its operations, the situation serves as a cautionary tale for other businesses in the region.
Frequently Asked Questions
Alerzo’s financial troubles stem from a ₦5 billion loan from Moniepoint Microfinance Bank, which has since accrued interest, leading to a total outstanding obligation of ₦4.38 billion. The company’s rapid expansion and high fixed costs amid Nigeria’s volatile economic environment have further exacerbated these issues.
As of now, Alerzo’s accounts and assets have been frozen by court order due to the ongoing debt dispute. However, CEO Adewale Opaleye has stated that the company is not liquidating its operational fleet but is selling scrap assets while maintaining over 400 vehicles in active service.
Alerzo’s financial challenges are indicative of a wider trend of rising corporate distress across Africa. Many businesses, particularly in asset-heavy sectors like logistics, are facing liquidation due to economic pressures such as fluctuating fuel prices, currency volatility, and tightening credit conditions.
Note: The situation surrounding Alerzo and other businesses in Africa is evolving, and ongoing developments may further impact the landscape of corporate finance in the region.
