A Nigerian business-to-business retail platform, Alerzo, has begun selling some of its assets as it faces mounting debt and legal pressure from Moniepoint Microfinance Bank.
Videos shared on social media this week showed rows of branded motorcycles and buses parked at the company’s facility in Ibadan, in southwest Nigeria. A voice in the background called on buyers to purchase the vehicles in large numbers.
The development comes after the Federal High Court of Nigeria in Lagos froze the company’s bank accounts and assets. The order followed a loan dispute between Alerzo and Moniepoint.
Court records show that Alerzo secured a N5 billion loan in January 2025 to support its daily operations and stock supply to small retailers. The facility was approved for 18 months.
However, by December 2025, the company had not repaid a large part of the loan. The outstanding balance stood at N4.38 billion, with interest still adding up.
After the company failed to respond to a demand letter issued in November, the bank went to court. The judge granted a Mareva injunction, blocking financial institutions from releasing funds linked to Alerzo and related parties until the matter is resolved.
The case also names the company’s managing director, Adewale Opaleye, several guarantors, and a Singapore-registered entity linked to the business.
Alerzo has not released a formal public statement. However, a source close to the company said difficult economic conditions in Nigeria played a major role in the company’s troubles.
“They tried their best. They did everything to stay afloat and keep several young Nigerians under their employment, but several economic factors were against them,” the source said.
Chief Executive Officer Adewale Opaleye has said the company is not selling active operational vehicles. According to him, more than 400 vehicles remain in service. He described the current sales as scrap disposal and said they are not connected to the debt dispute.
Alerzo was founded as a digital platform that supplied goods directly to neighborhood shops, cutting out middlemen. The idea was simple: lower prices, faster delivery and better access to stock for small retailers.
The company expanded quickly across Lagos, Oyo, Ogun and other states in southwest Nigeria. At its peak, it raised about $20 million from investors and employed hundreds of workers.
But its model depended heavily on logistics warehouses, vehicles, fuel and drivers. These costs increased sharply in recent years. Profit margins in retail distribution are thin, and rising inflation, currency pressure and higher fuel prices made operations more expensive.
By 2023, the company had already reduced staff as it tried to manage costs.
Alerzo’s situation reflects a broader shift in Nigeria’s startup space. Many companies that expanded quickly during the investment boom between 2020 and 2022 are now facing tougher funding conditions.
Several high-profile startups have shut down in the past three years. In 2023, 54gene, once valued at over $150 million, closed after internal and financial challenges. In 2024, fintech firm Thepeer also stopped operations, citing product and compliance issues.
Analysts say the new climate demands stronger cost control, clearer revenue paths and less reliance on external funding.