Alerzo is currently facing a hard test that many African startups never prepare for. It has to run a low-margin distribution business in a high-cost economy, while a lender pushes a live debt recovery case in court. Still, Alerzo can survive this moment if it treats the crisis like an operations reset, not a PR fight.
The debt story
Alerzo took a ₦5 billion working capital loan from Moniepoint Microfinance Bank with an 18-month tenor, tied to working capital needs. Repayment stress showed up within months, and Moniepoint issued a demand letter in November 2025, according to court-referenced reporting. By December 2025, filings put the outstanding obligation at around ₦4.38 billion, and interest kept growing.
In January 2026, the Federal High Court in Lagos granted a Mareva injunction that restrained banks from releasing funds linked to Alerzo and the named associates up to the claim value, and it ordered banks to disclose balances within seven days. That kind of order hits day to day operations because it blocks normal cash movement and forces the company into survival mode.
Alerzo’s CEO Adewale Opaleye disputed the idea that the company liquidates its operating fleet. He told local media that Alerzo sells faulty and non-functional vehicles as normal practice. He also said Alerzo does not run motorcycle delivery, and he described an active fleet that still supports operations.
Alerzo built a strong model, then Nigeria got more expensive
Alerzo built its business around helping informal retailers restock faster, while it also gave manufacturers a cleaner route to market. Early reporting described a full-stack approach that included warehousing and a large delivery fleet, so Alerzo controlled the supply chain and delivery experience.
That approach can win customers, but it burns cash when costs spike. Fleet ownership adds fuel, maintenance, drivers, and downtime. Warehouses add rent, power, and staffing. Those costs stay fixed even when order volume dips. In a high-volume, low-margin model, one bad cost cycle can erase the margin that looks good on paper.
Alerzo already showed signs of strain earlier. It cut staff across multiple waves, and one report tied a later round to warehouse automation and role consolidation. Cost-cutting usually signals that a company tries to protect unit economics after growth costs pile up.
The real trap in B2B distribution in Nigeria
B2B commerce in Nigeria rewards reliability, not just software. Retailers buy from the person who delivers stock today, not the app they liked last month. That pushes operators toward asset-heavy logistics so they can control fulfilment. The same decision also locks them into costs that move with fuel prices, FX pressure, and inflation.
Working capital also behaves differently in this market. Distributors tie money down inside inventory, and retailers often demand flexible payment behaviour. When cash conversion slows, debt starts to look like oxygen. Then the debt becomes a second business that management has to run every day.
Moniepoint’s court move also sends a wider signal to the market. Lenders now enforce hard recovery faster, and startups no longer get the long patience that equity investors once offered during the funding boom. That shift changes how founders should structure risk.
What Alerzo can do now that actually fits this market
Alerzo needs an execution plan that matches three facts. It runs a thin margin business, it operates under legal and cash pressure, and it serves merchants who punish inconsistency fast. The plan below focuses on actions that protect service while cutting fixed costs and giving the lender a clear recovery path.
1. Negotiate a repayment structure that matches cash reality
Alerzo should treat Moniepoint as a restructuring partner, not only as an opponent in court. The company needs to present a weekly cash plan, a collections plan, and a service continuity plan that show how Alerzo keeps revenue flowing while it repays. A lender negotiates faster when it sees credible controls and clean reporting. The current dispute already sits in court, so Alerzo needs a plan that reduces uncertainty for the judge and the bank.
Alerzo can also separate the conversation into two tracks. It can agree on an immediate standstill that protects operations, then it can agree on a longer repayment schedule that tracks real gross margin and operating cash. The 18 month structure fits short-cycle trading, but it breaks down when costs jump and collections slow.
2. Cut fixed logistics costs without breaking delivery
Alerzo should stop spending like a nationwide logistics company and start operating like a regional distribution network. It can keep control of fulfilment standards without owning every vehicle and running every route. It can push more deliveries through vetted third-party logistics partners, and it can keep a smaller core fleet for high-value routes and key accounts. This approach fits the asset-light argument that many operators already use in the same space.
If Alerzo sells any vehicles, it should tie the action to a published service plan. The CEO already says the company only clears faulty assets. Alerzo should expand that clarity and show what stays operational, what goes, and how service continues across core states. Clear service communication reduces churn and reduces damaging rumours.
3. Reduce inventory risk and shrink the SKU sprawl
Working capital kills B2B commerce faster than marketing ever will. Alerzo should narrow its catalogue to fast-moving SKUs that turn quickly, then it should build stronger supplier terms for those SKUs. It can push for supplier-supported inventory models that reduce cash tied down in stock. It should also reduce slow-moving items that create dead cash and warehouse drag. The loan itself targeted working capital, so fixing working capital directly addresses the root issue.
4. Focus on profitable density, not more coverage
Alerzo grew during the 2020 to 2022 funding era and expanded across states in the Southwest. That growth raised fixed costs. Alerzo should now concentrate its operations where it can achieve route density and predictable repeat orders. It should pause marginal territories that burn fuel and time for small baskets. This choice sounds painful, but it protects the merchants who already rely on the service, and it stabilizes cash flow.
5. Tighten governance and reporting so rumours stop driving the story
The public narrative now mixes partial facts and speculation. Alerzo needs to publish a plain statement that covers the loan, the court order, the status of operations, and the next update timeline. TechNext reported that the CEO planned an official update. The company should deliver it fast and keep it specific.
Alerzo should also professionalize lender grade reporting. It should produce weekly dashboards that track cash, collections, fulfilment performance, and inventory turns. This reporting helps in court, helps in negotiation, and helps in internal discipline. The company already uses automation and consolidation inside warehouses, so it can extend that discipline into finance operations.
A realistic outcome that still looks like a win
Alerzo does not need to “win” by returning to its old growth story. It can win by staying alive, protecting core merchants, and repaying on a structure that matches reality. If it executes an asset-light model with better working capital control, it can keep the part of the business that customers value most, which includes reliable restocking and fair pricing. The original value proposition focused on removing middleman costs for informal retailers, and that value still matters in Nigeria today.
