Ahmad Farroukh, appointed CEO of Nigerian telecom giant Globacom in October 2024, resigned just one month into the role, marking an unusually brief tenure for an executive in such a high-profile position. While the company has not officially addressed the resignation, sources across the telecom industry point to persistent organizational challenges as the primary reason for his departure.
A Leadership Crisis with Structural Roots
Farroukh’s departure has reignited concerns about Globacom’s centralized decision-making process, which many insiders believe stifles executive autonomy. Mike Adenuga, Globacom’s billionaire founder, is known to maintain direct control over key decisions, often managing the telecom alongside his extensive portfolio of businesses in oil and gas, banking, and real estate.
According to a former Globacom executive, this management style, while effective in the company’s earlier years, has now become a bottleneck. Farroukh, whose leadership experience spans structured multinationals like MTN and Airtel, likely found it challenging to implement change in an environment where operational independence is limited.
Regulatory and Operational Hurdles
Farroukh’s resignation comes at a particularly turbulent time for Globacom, which is grappling with:
- Regulatory Scrutiny
- A 2024 audit by the Nigerian Communications Commission (NCC) revealed that over 40 million Globacom subscribers were improperly registered without valid National Identification Numbers (NINs), violating government regulations.
- This oversight cost the company dearly, shrinking its market share by 60%, leaving it with just 12% of the Nigerian mobile market.
- Cybersecurity Challenges
- A 2023 hack exposed sensitive subscriber data, damaging the company’s reputation and raising questions about its technological resilience.
- Erosion of Market Competitiveness
- In a competitive telecom market dominated by MTN and Airtel, Globacom has struggled to maintain its relevance. Operational inefficiencies, poor network quality, and limited innovation have further eroded customer loyalty.
A Pattern of Governance Issues
The abrupt resignation has also drawn attention to broader corporate governance challenges at Globacom. Critics, including former telecom executives and industry analysts, argue that the company’s lack of structural separation between its leadership and Adenuga’s other ventures creates inefficiencies.
“A CEO leaving in one month is unprecedented in the telecom industry. It underscores significant governance issues,” said Ayoola Oke, a former adviser to the NCC.
What’s Next for Globacom?
The leadership void left by Farroukh raises critical questions about Globacom’s future:
- Structural Reforms
- To attract and retain top talent, Globacom must overhaul its governance structure, allowing executives the autonomy to implement meaningful changes.
- Regaining Market Share
- Addressing subscriber registration issues and bolstering cybersecurity will be key to restoring customer trust.
- Innovation and Network Investments
- In a rapidly evolving industry, Globacom needs significant investments in technology, particularly in 5G infrastructure and customer-centric services, to compete with MTN and Airtel.
Conclusion
Ahmad Farroukh’s resignation after just one month is a wake-up call for Globacom. Without significant structural and operational reforms, the telecom giant risks falling further behind its competitors. For a company that once revolutionized Nigeria’s telecom landscape, this moment represents both a challenge and an opportunity to redefine its future. Whether Globacom can seize this opportunity remains to be seen.