Supreme Court Upholds AMCON’s N22bn Sale of Lagos Continental Hotel After Long Legal Battle
Supreme Court Upholds AMCON’s N22bn Sale of Lagos Continental Hotel After Long Legal Battle
The Supreme Court has ruled in favour of the Asset Management Corporation of Nigeria (AMCON), bringing to an end a prolonged legal dispute over the sale of the Lagos Continental Hotel, which was sold for N22 billion after the loan used to build the property became non-performing.
The case involved AMCON, Polaris Bank Limited, 11 Hospitality Plc, and Milan Industries Limited, and centred on the legality of the hotel’s disposal after the borrower failed to repay a credit facility granted for its construction in Victoria Island, Lagos.
The dispute began after the former Skye Bank Plc (now Polaris Bank) granted a loan to Milan Industries Limited for the development of the hotel. When the facility turned bad, the debt was later transferred to AMCON in September 2018 as part of efforts to recover non-performing loans in the banking sector.
Before the transfer, the bank had appointed Kunle Ogunba (SAN) as Receiver/Manager to recover the debt, and he took possession of the hotel based on the mortgage agreement used as collateral. After acquiring the debt, AMCON confirmed the appointment and later sold the hotel to 11 Hospitality Plc for N22 billion in line with its recovery powers.
Milan Industries challenged the sale at the Federal High Court, arguing that the disposal of the asset was unlawful, but the court dismissed the suit.
The company later appealed, and the Court of Appeal ruled in its favour, a decision that was subsequently contested at the Supreme Court.
In its final judgment delivered on February 20, 2026, the Supreme Court overturned the Court of Appeal ruling and affirmed AMCON’s authority to dispose of the mortgaged property.
The apex court held that the AMCON Act is a special law designed to address problems in the financial sector and must be interpreted accordingly. The court also upheld provisions of the law granting AMCON certain protections, including exemption from stamp duties and the right to enforce security on mortgaged assets where a debt remains unpaid.
The judgment confirmed that AMCON acted within its legal powers in selling the hotel, effectively ending the dispute.
With the Supreme Court verdict, the controversy over the sale of the Lagos Continental Hotel has been conclusively resolved, reaffirming AMCON’s mandate to recover bad debts and dispose of pledged assets when necessary.
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