Court Grant Foreclosure, Possession, Sale Order Of Property Over N150m Loan Default

An Ikeja High Court of Lagos State, has granted a foreclosure order in favour of Citygate Global Investment Limited, allowing the financial services company to take possession of and sell a mortgaged property belonging to businessman Hyginus Eze, over an unpaid loan of N150 million.

Justice Mathias O. Dawodu who presided over the court while delivering judgment in suit number ID/9743GCM/2025, on 14th May, 2026, held that the claimant had 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 lawyer, Barrister Adeniyi Joshua, had approached the court through an Originating Summons filed in August 2025, seeking declarations that the company was entitled to enforce its mortgage rights and foreclosure on 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 immediate/vacant possession and sale of the property, a perpetual injunction against the defendant and his representatives, as well as security assistance for the enforcement of any judgment.

According to the claimant, Eze obtained a loan facility of N150 million in December 2024 for a 10-month tenure at an interest rate of four per cent, and that the facility was secured by a legal mortgage over the Okota property. Further, the claimant stated that the defendant was expected to repay a cumulative sum of N210 million over a period of 10- months between January, 2025 to October, 2025.

The company alleged that despite making some repayments, the defendant defaulted in his obligations, leaving a substantial outstanding debt.

In response, Eze challenged the company’s claim, arguing that he received only N135 million rather than N150 million. While contended further that he had repaid over N90 million and had requested reconciliation and restructuring of the facility. However, the court noted that he failed to provide documentary evidence supporting the alleged repayments.

Justice Dawodu held that the burden of proof rested on the defendant regarding his claims of substantial repayment. The court found that mere assertions in an affidavit, unsupported by evidence, could not displace the claimant’s documentary records.

The judge further observed that the defendant’s correspondence, tendered as exhibits before the court, amounted to admissions of indebtedness. 

Citing established authorities on 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.

Consequently, Justice Dawodu granted the claimant’s requests for declarations of entitlement to enforce the mortgage and for foreclosure, possession and sale of the property. 

The judge however declined to grant the requests for a perpetual injunction and security enforcement orders, while also directed both parties to bear their respective costs.

Reacting on the court judgment, counsel to the Claimant,  Barrister Adeniyi Joshua warn the general public who may have interest in the property to desist from dealing with the property, since the property now belongs to Citygate Global Investment Limited.