Firm granted foreclosure order over N150m loan

A Lagos State High Court has granted Citygate Global Investment Limited the right to foreclose on a property belonging to businessman Hyginus Eze, stemming from an unpaid loan of N150 million. Justice Mathias Dawodu issued the order on May 14, 2026, enabling the company to seize and sell the mortgaged property located in Okota, Lagos.

The claimant, Citygate Global Investment Limited, initiated legal action in August 2025, seeking to enforce its mortgage rights. The company stated that Eze obtained a 10-month loan of N150 million in December 2024 at a 4% interest rate, using the Okota property as collateral. The repayment agreement stipulated a cumulative sum of N210 million between January and October 2025. Citygate alleged that despite some payments, Eze defaulted, leaving a significant balance.

Eze contested the claim, asserting he received only N135 million and had repaid over N90 million, requesting a reconciliation. However, the court found his defense lacked documentary evidence. Justice Dawodu ruled that the burden of proof for repayment lay with the defendant and that his assertions were insufficient against the claimant's records. The judge noted that Eze's own correspondence indicated an admission of debt.

Upholding the principle that mortgagees are entitled to foreclosure upon borrower default, the court granted Citygate's requests for declarations of entitlement, foreclosure, possession, and sale of the property. The court did not grant orders for a perpetual injunction or security enforcement, and both parties were directed to bear their own costs. Citygate's counsel warned the public against dealing with the property.