Ghanaian regulators shut down Nyak-City Hostels over unlicensed investment scheme

Ghana’s Securities and Exchange Commission (SEC) and the Economic and Organised Crime Office (EOCO) have shut down Nyak-City Hostels Limited for operating an unlicensed investment scheme. The company had been soliciting public funds to finance a planned 1,000-bed hostel facility near the University of Cape Coast’s Agona Nyakrom Campus.

Nyak-City Hostels marketed a product called “Treasury Hostel Investment,” which promised investors guaranteed lifetime returns over a 60-year period, claiming it was a superior alternative to treasury bonds. Regulators intervened after receiving intelligence that the company was offering investment products without the necessary licenses required under Ghana’s regulatory framework.

SEC Deputy Director General Mensah Thompson stated that the commission is taking proactive measures to prevent financial loss and protect confidence in the national financial market. He emphasized that the SEC will no longer wait for investors to lose money before taking enforcement action against entities using real estate to mask unauthorized investment services.