Nigeria’s indigenous telecom giant, Globacom, has announced the sudden resignation of its newly appointed CEO, Ahmed Farroukh, after just one month in the role. The news, confirmed on January 21, 2025, highlights ongoing challenges within the company, which has seen its market share dwindle amid growing competition from MTN and Airtel.
Thank you for reading this post, don't forget to subscribe!Resignation of Ahmed Farroukh
Farroukh, a seasoned telecom executive who previously led MTN Nigeria and MTN South Africa, was brought in to revitalize Globacom. However, his brief tenure suggests deeper issues within the company’s management structure and operational strategy. Sources indicate that the company’s internal culture, heavily influenced by founder Mike Adenuga’s hands-on leadership style, may have clashed with Farroukh’s independent approach.
Farroukh’s departure comes at a critical time for Globacom, which has faced increasing scrutiny over its governance and strategic direction. Industry observers are questioning whether the telecom giant can maintain its position in an increasingly competitive market.
Challenges Facing Globacom
Globacom has been grappling with several setbacks in recent years:
1. Cybersecurity Breach: In 2023, a major hack exposed customer data, damaging the company’s reputation and eroding subscriber trust.
2. Market Share Decline: Following a Nigerian Communications Commission (NCC) audit, Globacom’s active subscriber base was revealed to be 19.1 million—far below the previously reported 62.1 million. This revelation underscored issues with transparency in the company’s operations.
3. Governance Issues: The company has long operated under founder Mike Adenuga’s direct leadership, with calls for a more structured board and improved corporate governance. Farroukh’s appointment was expected to address these concerns, but his resignation has reignited doubts about Globacom’s future.
Industry Reaction and Outlook
The Nigerian telecom sector is closely watching Globacom’s next move, as the sudden leadership vacuum raises concerns about the company’s stability. The NCC may increase oversight of the firm, particularly in light of past crises and its declining market position.
Globacom’s ability to rebuild its reputation and regain market share will likely depend on a strategic overhaul. This includes addressing cybersecurity vulnerabilities, improving service offerings, and fostering a more transparent and customer-focused corporate culture.
Path Forward
The resignation of Ahmed Farroukh underscores the urgent need for systemic change at Globacom. As the company seeks a new CEO, it must prioritize governance reform, operational transparency, and innovation to reclaim its position as a leader in Nigeria’s telecom industry. Whether Globacom can rise to the challenge remains to be seen, but its response will be pivotal for its future in the competitive telecom landscape.
