The Supreme Court of Nigeria has delivered a definitive blow to high-profile debtors by upholding the ₦22 billion sale of the Lagos Continental Hotel by the Asset Management Corporation of Nigeria (AMCON) to a private consortium
In a landmark judgment delivered on Friday, February 20, 2026, a five-member panel of the Supreme Court, led by Justice Kudirat Kekere-Ekun, dismissed the long-standing appeals filed by Milan Industries Limited. The apex court’s ruling effectively set aside a previous Court of Appeal decision that had briefly returned the property to its original owners. The justices held that the AMCON Act is a “special legislation” designed to address unique financial exigencies, and as such, its provisions regarding the recovery of bad debts must be interpreted in line with its distinct remedial purpose. The court specifically validated Section 60 of the Act, which exempts AMCON from certain stamp duty requirements, and affirmed that the agency maintains a “continuing security interest” in assets as long as an outstanding debt exists.
The legal saga traces back to a credit facility advanced by the defunct Skye Bank (now Polaris Bank) to Milan Industries for the construction of the 361-room luxury hotel. After the loan became non-performing, AMCON acquired the Eligible Bank Asset (EBA) in September 2018 and validated the appointment of Kunle Ogunba (SAN) as Receiver/Manager to recover the debt. AMCON subsequently sold the asset for ₦22 billion to 11 Hospitality Plc (a subsidiary of 11Plc, formerly Mobil Oil Nigeria). While Milan Industries argued they had made significant repayments, the Supreme Court found that the statutory powers of AMCON to dispose of collateral tied to non-performing loans were exercised within the bounds of due process.
With this final verdict, the ownership of the Victoria Island landmark is now permanently settled, providing much-needed legal certainty for the investors. AMCON officials have hailed the judgment as a “defining moment” for debt recovery in Nigeria, sending a clear message that the era of using prolonged litigation to stall the recovery of public funds is coming to an end. The ruling not only secures the ₦22 billion recovery but also reinforces AMCON’s mandate to manage and dispose of high-value assets seized from chronic debtors to stabilize the nation’s financial sector.
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