The Supreme Court has delivered a landmark judgment affirming the powers of the Asset Management Corporation of Nigeria (AMCON) to sell mortgaged assets, bringing finality to a long-running legal dispute over the Lagos Continental Hotel.
The apex court issued its ruling on February 20, 2026, in favour of AMCON, resolving a complex case involving Polaris Bank Limited, AMCON, 11 Hospitality Plc, and Milan Industries Limited. The legal battle centered on the sale of the Victoria Island, Lagos property, which Milan Industries had developed with a bank loan.
The hotel was originally financed by a credit facility from the now-defunct Skye Bank Plc (now Polaris Bank) to Milan Industries Limited. When the loan became non-performing, AMCON acquired the Eligible Bank Asset (EBA) of Milan Industries from Polaris Bank in September 2018.
Before AMCON’s acquisition, the bank had appointed Kunle Ogunba (SAN) as Receiver/Manager to recover the outstanding loan. Ogunba subsequently took control of the Lagos Continental Hotel under the registered Deed of Legal Mortgage that secured the loan. Upon acquiring the EBA, AMCON confirmed Ogunba’s appointment as Receiver/Manager and proceeded to sell the hotel for N22 billion to 11 Hospitality Plc.
Following the sale, Milan Industries challenged the disposal in the Federal High Court, claiming the transaction was improper. The High Court dismissed the suit, but the Court of Appeal later ruled in favour of Milan Industries, prompting an appeal to the Supreme Court.
In its ruling, the Supreme Court set aside the Court of Appeal’s judgment, emphasizing that the AMCON Act is a special law designed to address unique challenges in Nigeria’s financial sector. The Court underscored that the Act should be interpreted in light of its special purpose, upholding provisions that protect AMCON’s rights as a mortgagee even without the upstamping of documents.
The apex court reaffirmed that AMCON retains a continuing security interest in mortgaged assets as long as the underlying debt remains outstanding. It also confirmed that AMCON is exempt from paying stamp duties under Section 60 of the AMCON Act.
With this decision, the Supreme Court validated AMCON’s sale of the Lagos Continental Hotel, ensuring that the agency’s authority to dispose of mortgaged assets is legally protected. The ruling effectively settles the dispute permanently, ending years of litigation over the high-profile Lagos property.