Nigerian startup Alerzo says only scrap vehicles are being sold

2026-02-26 21:49:50

B2B e-commerce startup Alerzo has debunked claims that it is selling its assets, noting that only scraps and faulty vehicles are being sold.

The company’s founder and CEO, Mr. Adewale Opaleye, made the clarification on Thursday in a chat with Nairametrics.

A video circulating online had shown several vehicles in the company’s facilities as being put up for sale.

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However, Opaleye said the video was a misrepresentation of the company as the vehicles shown were not for sale. He also noted that the company does not use motorcycles.

What the Alerzo founder is saying

While acknowledging that the company is indeed having a debt issue with Moniepoint, he said the sale of the vehicles has nothing to do with the matter, adding that the company is still actively in operation.

“In fact, we still have over 400 vehicles that we are currently running,” he said, emphasizing that the country is still actively in business.
“What we are doing is not unusual. it’s a normal business practice to clear out assets that are no longer functional. Every business does that,” he said.

The debt debacle

In January this year, the Federal High Court in Lagos granted Moniepoint Microfinance Bank Limited, a Mareva injunction against Alerzo Limited and its associates, restraining financial institutions from releasing funds linked to the Defendants pending the resolution the debt.

The Bank instituted the action against Alerzo Limited, its Managing Director, Opaleye Adewale Adesina, three guarantors Opaleye Bukola Modinat, Dauda Hakeem Omotayo Taiwo and Alerzo PTE Limited, a Singapore based entity.
Court documents reveal that Alerzo Limited applied for the loan through a board resolution dated January 20, 2025, to meet working capital requirements.
Moniepoint approved the facility for 18 months, with provisions allowing immediate recall in the event of default.
Despite a demand letter issued on November 18, 2025, the Defendants allegedly failed to liquidate their indebtedness. As of December 3, 2025, the outstanding balance stood at N4.38 billion, with interest charges continuing to accrue.

The Bank further alleged difficulties in serving court processes on the guarantors, noting that they were inaccessible at their known addresses. The fifth Defendant, Alerzo PTE Limited, was traced to Singapore, requiring leave of court for substituted service by courier.

Get up to speed

Founded as a fast-growing B2B commerce platform, Alerzo built a distribution network that supplied inventory directly to neighbourhood retailers, bypassing traditional wholesalers. The model promised lower prices, faster delivery, and improved efficiency for small shops.

At its peak, the company raised about $20 million in funding and expanded across Lagos, Oyo, Ogun, and other states in Southwest Nigeria, employing hundreds of staff.

However, the capital-intensive nature of logistics began to strain finances.

By 2023, the company had initiated layoffs as it struggled with rising operating costs, including vehicle maintenance, fuel, driver salaries, and warehousing expenses in a low-margin sector.

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