The Lagos State High Court sitting in Ikeja has granted a foreclosure order in favour of Citygate Global Investment Limited, empowering the financial services company to take possession of and sell a mortgaged property belonging to businessman, Hyginus Eze, over an alleged unpaid loan facility of ₦150 million.
Justice Mathias O. Dawodu delivered judgment in Suit No. ID/9743GCM/2025 on May 14, holding that Citygate successfully established its entitlement to enforce the security created under a Deed of Legal Mortgage and Memorandum of Deposit executed by the defendant in December 2024.
Citygate Global Investment Limited, through its counsel, Adeniyi Joshua, had approached the court by 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 sought orders granting it immediate and vacant possession of the property, power to sell the property, a perpetual injunction restraining the defendant and his representatives from interfering with the enforcement of the mortgage, and security assistance for the execution of any judgment in its favour.
According to the claimant, Eze obtained a loan facility of ₦150 million in December 2024 for a tenure of 10 months at an interest rate of four per cent. The facility was secured by a legal mortgage over the Okota property.
Citygate stated that the defendant was expected to repay a cumulative sum of ₦210 million over 10 months, from January 2025 to October 2025.
The company alleged that although Eze made some repayments, he defaulted in his repayment obligations, leaving a substantial outstanding debt.
In his defence, Eze disputed the claimant’s position, arguing that he received only ₦135 million and not ₦150 million. He further contended that he had repaid over ₦90 million and had requested reconciliation and restructuring of the facility.
However, the court held that the defendant failed to provide documentary evidence to support his claims of substantial repayment.
Justice Dawodu ruled that the burden of proof rested on Eze to establish his allegations of repayment, adding that mere assertions in an affidavit, without supporting evidence, could not displace the claimant’s documentary records.
The judge also observed that correspondence tendered before the court by the defendant amounted to admissions of indebtedness.
Relying on established principles governing mortgage transactions, the court reaffirmed that a mortgagee is entitled to exercise its power of foreclosure and sale where a borrower defaults on repayment obligations secured by a mortgage.
Consequently, Justice Dawodu granted Citygate’s requests for declarations of entitlement to enforce the mortgage, as well as orders of foreclosure, possession and sale of the property.
The court, however, declined the claimant’s requests for a perpetual injunction and security enforcement orders. It also directed both parties to bear their respective costs.
Following the judgment, counsel to the claimant, Adeniyi Joshua, notified the general public that the property now belongs to Citygate Global Investment Limited.
