The Supreme Court of Nigeria has affirmed the powers of the Asset Management Corporation of Nigeria (AMCON) to dispose of the Lagos Continental Hotel, bringing an end to a long-running legal dispute over the property.
The apex court delivered its judgment on February 20, 2026, in favour of AMCON after years of litigation involving Polaris Bank Limited, AMCON, 11 Hospitality Plc, and Milan Industries Limited.
Origin of the Dispute
The case stemmed from a credit facility granted by the defunct Skye Bank Plc—now Polaris Bank—to Milan Industries Limited for the construction of the Lagos Continental Hotel located in Victoria Island, Lagos.
However, the loan later became non-performing, prompting AMCON to acquire the Eligible Bank Asset from Polaris Bank in September 2018 as part of its mandate to stabilise Nigeria’s banking sector.
Before the loan acquisition, the bank had appointed Kunle Ogunba as Receiver/Manager over Milan Industries to recover the outstanding debt.
In that capacity, Ogunba took possession of the hotel based on the registered Deed of Legal Mortgage securing the loan and his Deed of Appointment.
After acquiring the loan, AMCON subsequently validated Ogunba’s appointment and proceeded to dispose of the Lagos Continental Hotel to 11 Hospitality Plc for N22 billion.
Legal Battle Through Multiple Courts
Following the sale, Milan Industries Limited filed a suit at the Federal High Court challenging AMCON’s decision to dispose of the asset.
The Federal High Court dismissed the case, but Milan Industries later appealed the decision at the Court of Appeal, which ruled in its favour.
The verdict was subsequently challenged at the Supreme Court by AMCON.
Supreme Court Clarifies AMCON’s Powers
In its final ruling, the Supreme Court overturned the decision of the Court of Appeal and upheld AMCON’s authority under the AMCON Act.
The apex court held that the AMCON Act is a special legislation enacted by the National Assembly to address unique challenges within Nigeria’s financial system.
It also reaffirmed provisions of Section 60 of the law, which exempts AMCON from paying stamp duties and confirms its rights as a mortgagee regardless of the upstamping of documents.
According to the court, AMCON retains a continuing security interest in mortgaged assets as long as the outstanding debt remains unpaid.
Hotel Sale Upheld
With the ruling, the Supreme Court validated the sale of the Lagos Continental Hotel and reinforced AMCON’s authority to dispose of mortgaged assets in the course of recovering non-performing loans.
The development effectively ends the legal dispute over the property, bringing the matter to a final close.
