By Emeka Blast 
GTBank Fails to Reclaim MKO Abiola’s Son’s Lagos Mansion
By Emeka Blast, Lagos, Nigeria – June 21, 2025
In a landmark ruling, the Court of Appeal in Lagos has nullified Guaranty Trust Bank Plc’s (GTBank) attempt to foreclose on a N30 billion, 44-room mansion in Ikoyi, Lagos, owned by Alhaji Agboola Abiola, son of the late business magnate and politician, Chief M.K.O. Abiola. The unanimous decision, delivered on June 18, 2025, and certified on June 19, overturned a 2013 Federal High Court judgment that had permitted GTBank to seize the property, citing serious allegations of forgery and irregularities in the bank’s mortgage documentation.
Case Background
The dispute, marked as Appeal No. CA/L/888/2014, stemmed from a 2013 Federal High Court ruling that allowed GTBank to take possession of the Queens’ Drive property, valued at N30 billion, as part of a foreclosure action tied to loans totaling N1.508 billion. The loans comprised a N508 million facility and a N1 billion facility, allegedly secured by a tripartite legal mortgage. RCN Networks Ltd, the first appellant, acknowledged signing the mortgage deed, but Agboola Abiola, the second appellant, contested its authenticity, alleging fraud.
The appellants, represented by Senior Advocate of Nigeria Dr. Charles Adeogun-Phillips, argued that GTBank manipulated the mortgage document by inserting an execution page bearing Abiola’s signature from another agreement. They further accused the bank of consolidating the two loans without consent, using the same disputed page to enforce both obligations. GTBank, represented by Norrison Quakers, maintained that the mortgage was valid and that the foreclosure was lawful.
Appellate Court’s Findings
The Court of Appeal, led by Justice Paul Aimee Bassi and supported by Justices Polycarp Kwahar and Abdulaziz Anka, found the Federal High Court’s 2014 ruling, dated June 20, fundamentally flawed. Justice Bassi, delivering the lead judgment, described the mortgage instrument as “fundamentally flawed” due to significant discrepancies, including:
- Pagination Irregularities: The main pages of the mortgage deed were numbered “2 of 9” through “9 of 9,” while the execution page was marked “11 of 17,” suggesting it originated from a different document.
- Alleged Forgery: Agboola Abiola denied signing the mortgage deed, claiming the execution page was fraudulently extracted from another agreement. The court noted that GTBank failed to adequately refute these allegations.
- Improper Loan Consolidation: The appellants alleged that GTBank merged the N508 million and N1 billion loans without their approval, using the same execution page to secure both transactions. The bank had liquidated shares pledged as collateral for the N508 million loan but attempted to use the same document to justify foreclosing on the N1 billion loan.
The court criticized the lower court for failing to address these “serious allegations of forgery and fraud,” stating that a document riddled with such inconsistencies could not support foreclosure. Police investigations into the forgery claims were inconclusive, with one report recommending arbitration and another dismissing the allegations. However, the appellate court held that the pagination discrepancies and other irregularities raised a “serious cloud” over the document’s authenticity, rendering it invalid.
Ruling and Legal Outcome
The Court of Appeal set aside the Federal High Court’s June 20, 2014, ruling, declaring GTBank’s foreclosure action unlawful. The court ordered both parties to bear their respective legal costs, ensuring no additional financial burden from the litigation. The decision restores ownership of the Ikoyi mansion to Agboola Abiola, securing a significant asset tied to the legacy of M.K.O. Abiola, the presumed winner of Nigeria’s annulled June 12, 1993, presidential election.
Significance and Broader Implications
This ruling is a major victory for the Abiola family, preserving a valuable property and reinforcing their legal standing in disputes related to M.K.O. Abiola’s estate. It underscores the judiciary’s critical role in scrutinizing financial institutions’ practices, particularly in high-stakes foreclosure cases. The decision sets a precedent for addressing allegations of fraud in mortgage disputes, emphasizing the importance of document integrity in legal agreements.
For GTBank, the ruling may prompt a review of its mortgage and foreclosure processes to ensure compliance with legal standards. The bank, a leading financial institution in Nigeria recognized as Africa’s best bank by Euromoney in 2019 and 2021, has faced recent challenges, including public backlash in May 2025 when two Benue State branches were set ablaze following the arrest of activist VeryDarkMan. This legal setback adds to the bank’s scrutiny, highlighting the need for transparency in its operations.
The case also reflects broader tensions in Nigeria’s high-end property market, where disputes over mortgage agreements and loan defaults can escalate into significant legal battles. The ruling may encourage other borrowers to challenge foreclosure actions based on questionable documentation, potentially impacting banking practices across the sector.
Case Summary Table
| Aspect | Details |
|---|---|
| Case Name | RCN Networks Ltd & Agboola Abiola v. Guaranty Trust Bank Plc |
| Appeal Number | CA/L/888/2014 |
| Court | Court of Appeal, Lagos Division |
| Original Judgment Date | June 20, 2014 |
| Original Court | Federal High Court, Lagos |
| Appellate Decision Date | June 18, 2025 |
| Judges | Justice Paul Aimee Bassi (lead), Justices Polycarp Kwahar, Abdulaziz Anka |
| Property Involved | 44-room mansion in Ikoyi, Lagos, valued at N30 billion |
| Loan Amounts | N508 million, N1 billion (total N1.508 billion) |
| Key Allegations | Forgery of mortgage deed, improper loan consolidation |
| Document Issues | Pagination discrepancies, handwritten alterations |
| Police Investigation Outcome | Inconclusive, one report recommended arbitration, another dismissed claims |
| Appellate Ruling | Foreclosure nullified, parties bear respective costs |
Conclusion
The Court of Appeal’s ruling on June 18, 2025, marks a significant legal triumph for Alhaji Agboola Abiola, securing ownership of a N30 billion Ikoyi mansion and exposing flaws in GTBank’s foreclosure process. By overturning the 2013 Federal High Court decision, the court has highlighted the importance of addressing allegations of fraud and ensuring document integrity in financial disputes. The decision may influence banking practices in Nigeria, encouraging greater transparency, while preserving a key asset for the Abiola family. As the case continues to resonate in public discourse, it underscores the judiciary’s role in upholding fairness in Nigeria’s complex property and financial landscape.
