The dispute between Ibadan-based B2B e-commerce startup Alerzo and fintech lender Moniepoint Microfinance Bank is fast becoming a defining test of how far Nigerian startups can stretch growth financed by debt rather than equity.
At the centre of the standoff is a N5 billion loan approved in January 2025. Less than a year later, the outstanding balance stands at N4.38 billion, with interest still accruing. A Federal High Court in Lagos has granted a Mareva injunction freezing Alerzo’s accounts up to the value of the claim, effectively tightening liquidity around a company already navigating thin margins.
The immediate trigger for public scrutiny was speculation on X that Alerzo had begun selling off its delivery fleet amid financial distress.
Read also: Debt financing in tech rivals equity, hits $1bn
Adewale Opaleye, founder and managing director, Alerzo, pushed back, insisting the company is only disposing of faulty and non-functional vehicles from a fleet of roughly 400.
According to him, asset disposal is routine housekeeping, not a liquidation signal. He also dismissed claims that the company relies on motorcycles for deliveries.
Yet the optics are difficult to separate from the legal backdrop. When a court freezes assets and orders banks to disclose account balances within days, even routine fleet optimisation begins to look like triage.
Debt, not equity, as survival capital
Alerzo’s trajectory mirrors that of many Nigerian startups that expanded aggressively during the 2020–2022 funding boom. The company reportedly raised over $20 million during that period, building a logistics-heavy model delivering goods directly to small retailers across Lagos, Oyo, Ogun and other southwestern states.
But B2B commerce is a volume game with razor-thin margins. Maintaining hundreds of vehicles, paying drivers, warehousing goods and absorbing fuel volatility created a cost base that proved difficult to sustain once venture funding slowed.
Unlike peers that cut operations early or pivoted, Alerzo turned to bank debt. The N5 billion facility from Moniepoint was structured with an 18-month tenor, intended to provide working capital. Court filings indicate that by November 2025, Moniepoint had issued a demand letter after missed repayments.
The case underscores a structural tension: venture-backed startups are designed for high growth and risk tolerance, while regulated financial institutions operate on strict recovery mandates.
For Moniepoint, which has expanded aggressively and positioned itself as a key lender to businesses, enforcement is non-negotiable. Allowing a high-profile default to slide could weaken its credit culture. For Alerzo, however, aggressive recovery constrains its ability to trade out of trouble.
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Frozen liquidity, ongoing operations
Justice Daniel Osiagor’s order restrains financial institutions from releasing funds belonging to Alerzo or its associates up to the claim amount. Banks were also directed to disclose balances within seven days.
Such injunctions are powerful tools. Even if operational vehicles remain on the road, working capital becomes harder to deploy. Suppliers may tighten terms. Staff anxiety rises. Customers question continuity.
Opaleye has said the company will release an official statement soon, describing it as big news. He has not disclosed how many vehicles are being sold or whether proceeds would go toward debt servicing.
The silence leaves the market speculating: is Alerzo negotiating restructuring, seeking new equity, or preparing for asset realignment?
A wider startup reckoning
Alerzo is not alone. Across Nigeria’s tech ecosystem, companies that scaled during the era of abundant capital now face a harsher climate defined by currency volatility, inflation, investor caution and higher borrowing costs.
The difference in Alerzo’s case is the size and visibility of the lender. When venture money dries up, equity investors absorb losses quietly. When a bank is owed billions, the matter moves to court.
The unfolding dispute could shape how Nigerian fintech lenders approach startup credit going forward. It may also force founders to rethink the balance between debt-fuelled expansion and operational sustainability in sectors where margins are unforgiving.
For now, Alerzo insists operations continue and that fleet sales are routine. But with N4.38 billion hanging in the balance and accounts under restriction, the company’s next move will determine whether this becomes a restructuring story or a cautionary tale about the limits of debt in Nigeria’s startup economy.
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