SEC shuts down Nyak-City Hostels over unlicensed investment scheme

The Securities and Exchange Commission (SEC) has dismantled Nyak-City Hostels Limited for providing investment products without the necessary license. Established in 2025, the company is an unlicensed asset-backed investment business. Nyak-City Hostels Limited runs an investment product called “Treasury Hostel Investment,” which claims to offer a superior alternative to treasury bonds and guarantees lifetime returns from hostel-related investments over a 60-year period.

During the facility's shutdown, the SEC's Deputy Director General, Mensah Thompson, emphasized the Commission's dedication to purifying the investment sector and restoring investor confidence in Ghana's financial industry. Thompson stated the SEC would no longer wait for investors to suffer losses before taking action, stating, "We take action.

We can't wait for the risk to happen for people to lose money before we take action. We are saying that the SEC is no longer going to sit back anymore." The Commission had intercepted intelligence on the company's activities and promptly shut down the facility before investors could face potential losses. Thompson expressed concern about businesses exploiting real estate to offer investment services without the required licensing.

He warned that such activities can erode investor confidence in Ghana's financial market at a time when confidence is slowly returning to the financial sector and the broader economy. Thompson stressed that investment products offered to the public must be licensed, vetted, and scrutinized by the regulator to ensure investor protection.

He added that licensed investment products provide regulatory mechanisms that can be activated if issues arise, enabling investors to recover their investments. The SEC invited representatives of Nyak-City Hostels Limited to its offices for discussions. Initially, the Commission opted for a lenient action by shutting down the facility instead of making arrests.

However, they indicated that further enforcement actions, including potential arrests and prosecutions, could occur if necessary. The SEC remains committed to taking action against unlicensed investment operators to protect investors and restore confidence in Ghana's financial sector.