The Supreme Court of Nigeria has confirmed the authority of the Asset Management Corporation of Nigeria (AMCON) regarding the sale of the Lagos Continental Hotel, bringing an end to a long-running legal dispute.
In a judgment delivered on February 20, 2026, the court ruled in favour of AMCON after years of litigation involving Polaris Bank Limited, AMCON, 11 Hospitality Plc, and Milan Industries Limited over the hotel’s sale.
The dispute dates back to a credit facility granted by the now-defunct Skye Bank Plc—now operating as Polaris Bank—to Milan Industries Limited. The loan was intended for the construction of the Lagos Continental Hotel located on Victoria Island in Lagos.
However, the loan later became non-performing. In September 2018, AMCON acquired the eligible bank asset linked to Milan Industries from Polaris Bank as part of efforts to recover the debt.
Before AMCON’s purchase of the loan, the bank had appointed Kunle Ogunba (SAN) as Receiver/Manager over Milan Industries Limited to manage and recover the outstanding loan. Acting in that capacity, Ogunba took control of the Lagos Continental Hotel based on the registered Deed of Legal Mortgage used as collateral for the loan and his official appointment.
After acquiring the debt, AMCON validated Ogunba’s role as Receiver/Manager. Subsequently, the corporation sold the Lagos Continental Hotel to 11 Hospitality Plc for ₦22 billion, relying on the rights granted under the mortgage agreement tied to the asset.
Milan Industries Limited later challenged the sale by filing a lawsuit at the Federal High Court (case number FHC/L/CS/1643/2020) against Polaris Bank, AMCON, and 11 Hospitality Plc, arguing that the sale of the hotel was unlawful.
The Federal High Court dismissed the case. Unsatisfied with the decision, Milan Industries appealed to the Court of Appeal in case CA/L/CV/476/2021, where the appellate court ruled in its favour.
However, the matter eventually reached the Supreme Court, which delivered its final judgment on February 20, 2026. The apex court overturned the Court of Appeal’s ruling and upheld the authority of AMCON.
In its decision, the Supreme Court emphasized that the AMCON Act is a special law created by the National Assembly to address unique challenges in the financial sector. The court stated that the law must be interpreted in line with its special purpose.
The court also affirmed key provisions of the Act, including Section 60, which exempts AMCON from paying stamp duties. It further confirmed AMCON’s rights as a mortgage holder regardless of whether the mortgage documents had been upstamped.
According to the court, as long as an outstanding debt exists, AMCON retains a valid security interest in the mortgaged assets.
By upholding the sale of the Lagos Continental Hotel, the Supreme Court reinforced AMCON’s authority to dispose of mortgaged assets in order to recover debts tied to eligible bank assets.
The ruling effectively settles the dispute permanently, bringing the long-standing case to a close.