OpenLife reports that as the Supreme Court has affirmed the powers of the Asset Management Corporation of Nigeria (AMCON) on the sale of the Lagos Continental Hotel, Milan Industries Limited has finally lost ownership of the high profile hotel in Lagos.
The Supreme Court delivered judgment on February 20 in favour of Asset Management Corporation of Nigeria, AMCON, following a protracted legal battle between Polaris Bank Limited, AMCON, 11 Hospitality Plc and Milan Industries Limited over the sale of the hotel.
The defunct Skye Bank Plc (now Polaris Bank) advanced a credit facility to Milan Industries Limited for the construction of the Lagos Continental Hotel on Victoria Island, Lagos.
The loan became non-performing, and AMCON acquired the Eligible Bank Asset (EBA) of Milan Industries Limited from Polaris Bank in September 2018.
Before the purchase of the loan, the bank had appointed Kunle Ogunba (SAN) as Receiver/Manager over Milan Industries to recover the non-performing loan.
As Receiver/Manager, Ogunba took over the Lagos Continental Hotel pursuant to the registered Deed of Legal Mortgage collateralising the Hotel to the Bank and his Deed of Appointment.
Upon acquisition of the EBA, AMCON validated the appointment of Ogunba as Receiver/Manager.
AMCON disposed of the Lagos Continental Hotel for the sum of N22 billion to 11 Hospitality Plc pursuant to the registered Deed of Legal Mortgage collateralising the Hotel to the Bank/AMCON.
Following the disposal of the collateral, Milan Industries Limited commenced suit FHC/L/CS/1643/2020 – Milan Industries Limited vs Polaris Bank Limited, AMCON and 11 Plc, in which the obligor challenged the disposal of the collateral by AMCON.
The Federal High Court dismissed the obligor’s suit.
Dissatisfied with the judgment, Milan Industries filed an appeal at the Court of Appeal vide CA/L/CV/476/2021: Milan Industries Limited vs Polaris Bank Ltd, AMCON & 11 Hospitality Plc.
The Court of Appeal ruled in favour of Milan Industries Limited.
The judgment of the Court of Appeal was appealed to the Supreme Court, which finally ruled on the matter on February 20, 2026, in favour of AMCON.
In setting aside the judgment of the Court of Appeal, the Supreme Court stated that the AMCON Act is a special law enacted by the National Assembly to tackle peculiar problems in the financial industry, and interpretation should be done in accordance with the special nature of the law.
The Supreme Court affirmed salient provisions of the Act and upheld the provisions of Section 60 of the AMCON, which exempts it from paying stamp duties.
It also validated the rights of AMCON as a mortgagee irrespective of the upstamping of the document.
The Supreme Court held that, provided there was an outstanding debt, AMCON had a continuing security interest in the mortgaged assets.
The Supreme Court upheld the sale of the Lagos Intercontinental Hotel, thereby ensuring that the powers of AMCON to dispose of mortgaged assets are protected.
AMCON acquired the Lagos Continental Hotel as collateral for an eligible bank asset purchased from Sky Bank Plc (now Polaris Bank) following the failure of Milan Industries to repay its outstanding debt to the bank.
With this development, the matter has been permanently laid to rest.
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