Globacom CEO Ahmed Farroukh Resigns Just After One Month, Due to Governance Issues

Nigeria’s indigenous telecom giant, Globacom has seen its newly appointed CEO, Ahmed Farroukh, resign after just one month. This development adds another layer to the unfolding narrative of Globacom’s challenges in the highly competitive telecom sector. His sudden departure, however, signals deep-seated issues within the company’s management structure and operational strategy.

The Resignation of Ahmed Farroukh

Ahmed Farroukh, who previously held significant positions including CEO at MTN Nigeria and MTN South Africa, was brought in to steer Globacom back to its once-celebrated innovative path. His tenure, however, was exceptionally brief. According to multiple sources, Farroukh’s departure is not just a personal decision but reflects deeper issues at Globacom. His exit, announced on January 21, 2025, raises questions about the company’s governance and strategic direction in a market increasingly dominated by competitors like MTN and Airtel.

His departure after only a month has left industry observers pondering whether the internal culture, known for being heavily influenced by founder Mike Adenuga’s hands-on approach, might have clashed with Farroukh’s more independent leadership style, which was successful in his previous roles.

Challenges

Globacom has faced setbacks that have significantly impacted its market standing. In 2023, a major hack compromised customer data, leading to a loss of trust among subscribers and a tarnished brand image. This incident was one of the largest cyberattacks on a telecom operator in Nigeria, highlighting the vulnerabilities in Globacom’s infrastructure.

The company has seen its market share diminish, particularly after a recent audit by the Nigerian Communications Commission (NCC) which adjusted subscriber figures, revealing that Globacom had only 19.1 million active subscribers compared to the previously reported 62.1 million. This adjustment highlighted the need for transparency in subscriber reporting across the industry.

The need for a more structured board and clear leadership has been a recurring theme, especially after years of being run as a one-man show by its founder, Mike Adenuga. Farroukh’s appointment was seen as a move towards better corporate governance, but his quick exit suggests underlying operational and strategic issues.

Industry Reaction and Future Outlook

The telecom industry in Nigeria has been watching Globacom closely. With the leadership vacuum, there’s speculation on how the company will navigate its recovery. The NCC is likely to increase oversight on Globacom, potentially investigating governance practices following this high-profile resignation. The regulator’s response to previous crises has often been reactive, but there might be a push towards more proactive measures to ensure stability within the telecom sector.

The abrupt CEO departure could further erode investor confidence, already shaken by the company’s operational hiccups and financial losses. For consumers, the focus might shift towards service reliability and data security, pushing them towards competitors unless Globacom can swiftly address these concerns.

Globacom might need to rethink its strategy, possibly focusing on innovation in service offerings, enhancing digital security, and re-establishing its brand as a customer-centric provider. The appointment of a new CEO with a clear mandate could be pivotal in this turnaround.

The resignation of Ahmed Farroukh underscores the multifaceted challenges facing Globacom. While the telecom giant has a storied history of defying the odds, the current scenario demands more than just leadership changes; it requires a comprehensive overhaul of business practices, governance models, and perhaps a redefinition of its market position. As Globacom moves forward, all eyes will be on how it rebuilds from this latest setback and whether it can reclaim its place as an innovator in Nigeria’s telecom landscape.

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