A construction firm, Dakilog Global Resources Limited, and its principal, Deji Ogunade, have initiated legal proceedings against Equity Resort, formerly known as Gateway Hotel, at the Ogun State High Court sitting in Ijebu-Ode. The lawsuit centers on an alleged breach of contract related to the renovation of hotel rooms.
The claimants, represented by their counsel Wale Ogunade, are demanding over N239 million in damages and outstanding payments. They accuse the hospitality company of failing to adhere to agreed payment terms under a renovation contract awarded in October 2024.
According to court filings before the High Court of Ogun State, Ijebu-Ode Judicial Division, the contractors allege that Equity Resort engaged them to renovate 26 en-suite rooms at its premises under an agreement dated October 23, 2024. The contract stipulated payment in six monthly installments of N10 million each.
The claimants further state that after commencing work and fulfilling their obligations, the defendant paid only N500,000 after the first month, instead of the agreed N10 million. Despite this payment shortfall, the hotel repeatedly assured them that the outstanding balance would be settled and encouraged them to continue with the project, according to the claimants.
Additionally, the claimants allege that extra works were introduced at the defendant's instruction, with costs to be added to the existing debt. Engineer Ogunade and his firm claim they relied on these assurances, sold personal assets, and secured a N4 million loan at an additional N1 million interest to sustain the project.
They state that they completed 14 of the en-suite rooms, which were subsequently rented out by the hotel, particularly during the 2025 Ileya festival period, without any remittance made to them. The claimants also reference correspondence dated February 20, 2026, in which the hotel acknowledged awarding the contract but claimed that the original payment arrangement had been reviewed due to alleged concerns over fund diversion—an allegation the contractors firmly deny.
The claimants maintain that the defendant failed to meet its contractual obligations and instead frustrated the project while benefiting commercially from the completed rooms. They further allege that the renovated rooms have remained in commercial use for over a year and that they and their staff were later driven from the premises, preventing them from monitoring activities at the facility.
Among the reliefs sought, the claimants ask the court to declare the defendant's failure to pay as a fundamental breach of contract and to compel payment of an outstanding balance of N29 million. They are also seeking N200 million in general damages, 10 percent yearly interest on the judgment sum from the date of judgment until final liquidation, and N10 million as solicitor's fees.
As of now, the defendant has not filed any counterclaim, and the case has not been assigned to a judge yet.
