SEC, EOCO shut down Nyak-City Hostels over unlicensed investment activities

The Securities and Exchange Commission (SEC) has shut down Nyak-City Hostels Ltd for allegedly offering investment products to the public without the required licence.

The enforcement exercise was carried out on Monday, September 28, 2026, in collaboration with the Economic and Organised Crime Office (EOCO), as the regulator steps up action against entities operating outside Ghana’s investment regulatory framework.

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The SEC’s action serves as a reminder to prospective investors to confirm that any company offering an investment opportunity has the necessary regulatory approval before committing their funds.

Nyak-City came under the SEC’s radar over activities linked to the mobilisation of funds from the public for its hostel development project.

The company had been seeking financial support for a planned 1,000-bed hostel facility at the University of Cape Coast (UCC) Agona Nyakrom Campus.

In August 2025, the company’s Chief Executive Officer, Yawson Otoo, announced that architectural designs for the project had been completed and appealed to individuals, families, private companies and corporate organisations to support the development.

The company had also outlined a wider five-year plan to develop up to 10,000 beds, starting with the 1,000-bed facility at the UCC campus, as part of efforts to provide accommodation for students and support economic activity around the area.

The SEC’s action, however, relates to the regulatory requirement for companies that offer investment products or mobilise investment funds from the public to obtain the appropriate approval from the Commission.

The shutdown highlights the distinction between ordinary fundraising for a business project and activities that amount to offering an investment product to the public.

Such activities fall within the regulatory responsibilities of the SEC and require the appropriate licence.

The Commission has in recent months intensified warnings against unlicensed investment schemes and urged the public to verify the licence status of companies before committing their funds.

The involvement of EOCO in the operation also signals a wider enforcement approach, with the SEC working with law enforcement agencies to investigate activities involving suspected breaches of Ghana’s financial and investment laws.

The Securities and Exchange Commission (SEC) has shut down Nyak-City Hostels Ltd for offering investment products without the required licence, in a joint enforcement action with the Economic and Organised Crime Office (EOCO).#3NewsGH #TV3GH pic.twitter.com/Z0XS5XvTzb

— #TV3GH (@tv3_ghana) September 28, 2026