Globacom CEO Ahmad Farroukh has resigned just one month after assuming the role in October 2024, marking one of the shortest leadership stints in Nigeria’s telecom industry. His abrupt departure has sparked questions about the telco’s internal challenges and governance style.
Industry expert Ayoola Oke, a former adviser to the Nigerian Communications Commission (NCC) executive vice-chairman, described the situation as “unprecedented in the industry.” He suggested the NCC could investigate the reasons for Farroukh’s exit, citing corporate governance concerns covered under the NCC Act.
Possible reason
While Globacom has remained silent on the matter, insiders point to the company’s centralised management style under its billionaire founder, Mike Adenuga, as a possible reason for Farroukh’s departure. Adenuga, who has historically led the company since its founding in 2003, has maintained a top-down decision-making approach that has reportedly made it difficult for CEOs to operate independently.
Globacom’s struggles have been mounting in recent years. The company’s market share dropped to 12% following regulatory penalties for improperly registered SIMs, compounded by the loss of 40 million subscribers after an NCC review of its data. A major data breach in 2023 further dented its reputation, exposing millions of customer records and eroding trust.
Farroukh’s appointment was initially seen as a bold move to steer the telco out of crisis mode and into recovery. However, his swift resignation has raised questions about whether Globacom can adapt to regulatory pressures and fierce competition in the telecom sector.
The company’s next steps are uncertain. Will it bring in a new CEO or see Adenuga retake control? Observers agree that Globacom must address its entrenched governance issues if it hopes to regain its footing in an evolving market. For a company once seen as a trailblazer in Nigerian telecoms, the stakes have never been higher: evolve or risk further decline.
