Supreme Court Of Nigeria Upholds AMCON’s N22bn Sale Of Lagos Continental Hotel
By Rashidat Olushola Okunlade
The Supreme Court of Nigeria has affirmed the sale of the Lagos Continental Hotel by the Asset Management Corporation of Nigeria for N22 billion, bringing to a close a prolonged legal dispute involving Polaris Bank Limited, Milan Industries Limited and 11 Hospitality Plc.
The apex court delivered its final judgment on February 20, 2026, setting aside an earlier ruling by the Court of Appeal which had favoured Milan Industries Limited. The Supreme Court’s decision effectively validates AMCON’s authority to dispose of mortgaged assets in the course of recovering non-performing loans within the financial system.
The dispute stemmed from a credit facility granted by the defunct Skye Bank Plc, now Polaris Bank Limited, to Milan Industries Limited for the construction of the luxury hotel located in Victoria Island, Lagos. Following the borrower’s failure to service the loan, the facility became non-performing and was subsequently acquired by AMCON as an Eligible Bank Asset (EBA) in September 2018 as part of efforts to stabilise the banking sector.
Before AMCON’s acquisition of the loan, the bank had appointed Senior Advocate of Nigeria, Kunle Ogunba, as Receiver/Manager over Milan Industries Limited to facilitate recovery of the debt. Upon taking over the asset, AMCON ratified the appointment and later proceeded with the disposal of the hotel to 11 Hospitality Plc in line with the provisions of the legal mortgage securing the facility.
Milan Industries Limited had challenged the sale at the Federal High Court, which dismissed the suit. The company later secured a favourable ruling at the Court of Appeal, prompting AMCON to escalate the matter to the Supreme Court.
In its landmark ruling, the Supreme Court emphasised that the AMCON Act is a special legislation enacted by the National Assembly to address systemic challenges in Nigeria’s financial industry. The court upheld key provisions of the Act, including Section 60, which exempts AMCON from the payment of stamp duties.
The court further affirmed AMCON’s continuing security interest in mortgaged assets where outstanding debts remain, regardless of issues relating to document stamping. Consequently, the apex court validated AMCON’s powers as a mortgagee and upheld the corporation’s right to dispose of the hotel asset.
With the ruling, the long-running dispute over the hotel’s sale has been conclusively resolved, reinforcing confidence in AMCON’s statutory mandate to recover bad loans and strengthen financial system stability.
Reacting to the development, AMCON’s Head of Corporate Communications, Jude Nwauzor, noted that the judgment represents a significant legal victory for the corporation’s debt recovery framework.
The corporation is led by its Managing Director/Chief Executive Officer, Gbenga Alade.
