Bad Day for Debtors as S’court Upholds AMCON’s N22bn Lagos Continental Hotel Sale

It is no longer business as usual for debtors in West Africa’s biggest economy, as the supreme court has upheld the Asset Management Corporation of Nigeria (AMCON)’s sale of the Lagos Continental Hotel to a consortium for N22 billion.

In a judgment reportedly delivered on February 20, a five-member panel, led by Kudirat Kekere-Ekun, the presiding judge, dismissed appeals from the hotel’s former owners, citing adherence to due process and public interest in recovering bad debts.

Providing a historical context to the issue in a statement over the weekend, AMCON said the defunct Skye Bank (now Polaris Bank) had granted a credit facility to Milan Industries Limited for the development of the Lagos Continental Hotel.

However, the loan later became non-performing, according to the statement, prompting AMCON to acquire the company’s eligible bank asset (EBA) from Polaris Bank in September 2018.

AMCON was said to have acquired the Lagos Continental Hotel as collateral tied to the EBA after Milan Industries defaulted on its loan obligations.

Before the acquisition, the bank had appointed Kunle Ogunba as receiver/manager of Milan Industries to recover the outstanding debt.

In his capacity as receiver/manager, Ogunba, a senior advocate of Nigeria (SAN), assumed control of the Lagos Continental Hotel under the terms of the registered legal mortgage and his formal appointment.

Following the asset’s acquisition, AMCON upheld Ogunba’s appointment as receiver/manager.

Subsequently, the agency reportedly disposed of the Lagos Continental Hotel to 11 Hospitality Plc for N22 billion, in line with the terms of the registered legal mortgage securing the asset to the bank and AMCON.

THE SUPREME COURT JUDGEMENT

Following the sale, Milan Industries Limited filed a suit (FHC/L/CS/1643/2020) against Polaris Bank, AMCON, and 11 Hospitality Plc, challenging AMCON’s disposal of the collateral.

The federal high court initially dismissed the case.

But Milan Industries, dissatisfied with the decision, appealed the judgment at the court of appeal in case number CA/L/CV/476/2021: Milan Industries Limited vs Polaris Bank, AMCON & 11 Hospitality Plc.

The court of appeal ruled in favour of Milan Industries.

However, the decision was further appealed to the supreme court, which delivered its final judgment on February 20, 2026, in favour of AMCON.

Overturning the court of appeal’s decision, the supreme court held that the AMCON Act is a special legislation enacted by the national assembly to address unique challenges within the financial sector, and as such, must be interpreted in line with its distinct purpose.

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The apex court consequently affirmed key provisions of the Act, including section 60, which exempts AMCON from the payment of stamp duties, and upheld AMCON’s rights as a mortgagee, regardless of whether the documents were upstamped.

The court further ruled that as long as an outstanding debt exists, AMCON retains a continuing security interest in the mortgaged assets.

The court validated the sale of the Lagos Continental Hotel, reinforcing AMCON’s authority to dispose of secured assets, effectively bringing the matter to a final conclusion.

TheCable contacted Ogunba for comments, but phone calls went to voicemail at the time of reporting.

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On March 13, the Central Bank of Nigeria (CBN) asked commercial banks to restrict loan defaulters, specifically large-ticket obligors, from accessing credit facilities.

A large ticket obligor is a borrower (an individual or company) that owes a very large amount of money to a bank.

The new policy means it is no longer business as usual for debtors and a bad day for loan defaulters.