Lagos State High Court sitting in Ikeja has granted a foreclosure order in favour of Citygate Global Investment Limited, authorising the financial services company to take possession of and sell a property belonging to businessman Hyginus Eze over an alleged unpaid loan facility of ₦150 million.
Justice Mathias O. Dawodu delivered the judgment in Suit No. ID/9743GCM/2025 on May 14, ruling that Citygate had successfully established its right to enforce the security created under a Deed of Legal Mortgage and Memorandum of Deposit executed by Eze in December 2024.
Citygate, through its counsel, Adeniyi Joshua, approached the court through an Originating Summons filed in August 2025, seeking declarations that it was entitled to enforce its mortgage rights over the property located at No. 4 Chidi Duru Street, formerly known as Eboma Street, off Havana Street, Ago Palace Way, Okota, Lagos State.
The company also requested orders granting immediate vacant possession of the property, authority to sell it, a perpetual injunction restraining the defendant and his representatives from interfering with the mortgage enforcement process, and security assistance for the execution of any judgment in its favour.
According to court filings, Eze obtained a ₦150 million loan facility in December 2024 for a 10-month period at an interest rate of four per cent, with the Okota property used as collateral. Citygate stated that the agreement required repayment of a cumulative ₦210 million between January and October 2025.
The claimant alleged that although Eze made some repayments, he failed to meet his repayment obligations, resulting in a substantial outstanding debt.
In his defence, Eze challenged the claimant’s position, maintaining that he received ₦135 million rather than ₦150 million. He also argued that he had repaid more than ₦90 million and had sought reconciliation and restructuring of the loan facility.
However, the court ruled that Eze failed to provide documentary evidence supporting his claims of significant repayment. Justice Dawodu held that the burden of proof rested on the defendant and noted that assertions contained in an affidavit without supporting evidence could not outweigh the claimant’s documentary records.
The judge further observed that correspondence presented by Eze amounted to admissions of indebtedness.
Relying on established legal principles governing mortgage transactions, the court reaffirmed that a lender is entitled to exercise its power of foreclosure and sale where a borrower defaults on obligations secured by a mortgage.
Consequently, the court granted Citygate’s requests for declarations of entitlement to enforce the mortgage, as well as orders for foreclosure, possession and sale of the property.
However, the court declined the company’s requests for a perpetual injunction and security enforcement orders, while directing both parties to bear their respective legal costs.
Following the judgment, counsel to the claimant, Adeniyi Joshua, informed the public that the property now belongs to Citygate Global Investment Limited.
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