Supreme Court upholds AMCON’s N22bn sale of Lagos Continental Hotel, setback for debtors

DEBTORS in Nigeria’s financial sector have received a significant blow as the Supreme Court affirmed the Asset Management Corporation of Nigeria’s (AMCON) sale of the Lagos Continental Hotel for N22 billion. The transaction, carried out in line with due process, marks a clear signal that non-performing loans will be strictly enforced.

In a ruling delivered on February 20, a five-member panel led by Justice Kudirat Kekere-Ekun dismissed appeals from the hotel’s former owners. The court cited the public interest in recovering bad debts as a key reason for upholding the sale.

From loan default to AMCON acquisition

According to a statement from AMCON, the defunct Skye Bank (now Polaris Bank) had extended a credit facility to Milan Industries Limited for the development of the Lagos Continental Hotel. The loan later became non-performing, prompting AMCON to acquire the company’s eligible bank asset (EBA) from Polaris Bank in September 2018.

The hotel, used as collateral for the EBA, came under AMCON’s control after Milan Industries defaulted. Prior to the acquisition, Polaris Bank had appointed a Senior Advocate of Nigeria (SAN), Kunle Ogunba, as receiver/manager to recover the debt. Ogunba assumed management of the hotel under the registered legal mortgage and his official appointment.

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Following AMCON’s acquisition, Ogunba’s appointment was confirmed, and the agency sold the Lagos Continental Hotel to 11 Hospitality Plc for N22 billion, in accordance with the mortgage agreement.

The legal journey

Milan Industries challenged the sale by filing suit (FHC/L/CS/1643/2020) against Polaris Bank, AMCON, and 11 Hospitality Plc. The Federal High Court initially dismissed the case, but Milan Industries appealed to the Court of Appeal (CA/L/CV/476/2021), which ruled in its favour.

The matter was escalated to the Supreme Court, which delivered a final judgment on February 20, 2026, siding with AMCON. The apex court emphasised that the AMCON Act is a specialised law addressing unique financial sector challenges and must be interpreted in line with its purpose.

The court upheld key provisions, including Section 60 of the AMCON Act, which exempts the agency from stamp duty, and reinforced AMCON’s rights as a mortgagee, regardless of whether documents were upstamped. It further ruled that AMCON retains a continuing security interest in mortgaged assets as long as a debt remains outstanding. This judgment conclusively validated the sale of the Lagos Continental Hotel.

The Central Bank of Nigeria (CBN) recently directed commercial banks to limit credit access for large-ticket loan defaulters, borrowers owing substantial sums. The policy signals a stricter enforcement era for debtors, making it clear that defaults will have serious consequences.