Ghana’s Securities and Exchange Commission (SEC) has closed the premises of Nyak-City Hostels Limited, accusing the firm of selling investment products to the public without a licence.
The company, incorporated in 2025 by the Registrar of Companies, is described by the SEC as an unlicensed asset-backed investment firm.
Its “Treasury Hostel Investment” product was pitched as “a better alternative to a treasury bond,” with guaranteed lifetime returns from hostel investments over 60 years.
Speaking to journalists at the shutdown, SEC Deputy Director General Mensah Thompson said the regulator would no longer wait for investors to lose money before acting. “We take action. We can’t wait for the risk to happen for people to lose money,” he said.
He explained that the Commission acted on intelligence about the company’s operations and moved in before any investor losses could occur. “Once we receive intel, we move straight, shut the place down. If we need to arrest, we arrest. If we need to prosecute, we prosecute,” he added.
Mr Thompson voiced particular concern about businesses using real estate as a front to offer investment services without approval.
He noted that the company’s 60-year product had not received the necessary regulatory clearance, and warned that such schemes threaten confidence in Ghana’s financial market just as it is beginning to recover.
He stressed that any investment product offered to the public must be licensed, vetted and scrutinised by the regulator. Approved products, he said, come with resolution mechanisms that can be used if problems arise, giving investors added protection.
The SEC has invited representatives of Nyak-City Hostels Limited to its offices for discussions. Mr Thompson described the shutdown as a lenient step compared with making arrests, but cautioned that arrests and prosecution could follow if necessary.
The Commission says it will keep acting against unlicensed investment operators to protect investors and safeguard confidence in Ghana’s financial sector.
