The Lagos State High Court sitting in Ikeja has granted a foreclosure order in favour of Citygate Global Investment Limited, authorising the financial services firm 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 the judgment in Suit No. ID/9743GCM/2025, ruling that Citygate Global Investment Limited had successfully established its legal right to enforce a mortgage agreement executed by the defendant in December 2024.
The court held that the company was entitled to exercise its powers under a Deed of Legal Mortgage and Memorandum of Deposit after Eze allegedly defaulted on repayment obligations tied to the facility.
According to court documents, the businessman obtained a ₦150 million loan facility from Citygate in December 2024 for a tenure of 10 months at an interest rate of four per cent.
The loan was secured with a property located at No. 4 Chidi Duru Street, formerly Eboma Street, off Havana Street, Ago Palace Way, Okota, Lagos State.
Citygate told the court that the defendant was expected to repay a total sum of ₦210 million between January and October 2025 but failed to meet the agreed repayment schedule, leaving a substantial outstanding balance.
In his defence, Eze argued that he received ₦135 million rather than ₦150 million and claimed to have repaid more than ₦90 million. He also maintained that he had sought reconciliation and restructuring of the loan facility.
However, Justice Dawodu ruled that the defendant failed to provide documentary evidence to support his claims of substantial repayment.
The court held that the burden of proof rested on the borrower and that unsupported assertions contained in affidavits could not override documentary records presented by the claimant.
The judge further noted that some correspondence tendered before the court amounted to admissions of indebtedness by the defendant.
Relying on established legal principles governing mortgage transactions, the court affirmed that a mortgagee has the right to foreclose and sell a mortgaged property where a borrower defaults on repayment obligations.
Consequently, the court granted Citygate Global Investment Limited possession of the property and authorised the company to proceed with its sale.
The court, however, declined requests for a perpetual injunction against the defendant and security enforcement orders, directing both parties to bear their respective legal costs.
Following the judgment, counsel to Citygate Global Investment Limited, Adeniyi Joshua, announced that the property had effectively become the company’s asset by virtue of the court’s foreclosure order.
