Ahmad Farroukh, who was appointed CEO of Nigerian telecom big Globacom in October 2024, resigned after only one month within the function, a number of sources near the matter confirmed. Whereas Globacom has not issued an official assertion or communicated the resignation internally, a number of business insiders counsel the choice was linked to vital challenges inside the firm’s organisational construction.
A mid-level supervisor at Globacom, talking on the situation of anonymity, speculated Farroukh’s departure was tied to issues with the organisational setup. A top-level govt on the Nigerian Communications Fee (NCC) who requested to not be named confirmed Farroukh’s exit however declined to share specifics.
Globacom didn’t reply to a number of requests for feedback.
Farroukh’s abrupt resignation highlights vital inside challenges on the firm, which has lengthy been criticised for its centralised decision-making course of. In response to a former Globacom govt, the corporate’s founder, Mike Adenuga, is vital to most choices inside the firm. Adenuga has managed the telecom big alongside his different enterprise pursuits, together with oil and gasoline, monetary providers, and actual property, with minimal structural separation between his different ventures and Globacom’s operations.
This method has traditionally labored for the corporate however could have offered obstacles for Farroukh, whose expertise at extra structured organizations like MTN and Airtel may need led him to count on a unique degree of operational autonomy.
Farroukh’s departure additionally comes when Globacom is going through heightened regulatory scrutiny. In late 2024, the NCC’s sector audit revealed that over 40 million subscribers weren’t correctly registered with their Nationwide Identification Numbers (NIN), violating authorities laws. This led to a major lack of market share, with Globacom’s share of the Nigerian cell market shrinking by roughly 60%, leaving it with simply 12%.
Globacom has additionally confronted ongoing cybersecurity points, together with a high-profile hack in 2023 that uncovered the non-public information of hundreds of thousands of its subscribers. These points could have created an surroundings the place Farroukh’s management efforts couldn’t make a significant impression rapidly.
“A CEO leaving in a single month is unprecedented within the business. The NCC can examine the rationale for his exit. The fee can search a proof from the CEO, who is just not obligated to reply, or from the corporate as a result of that is about company governance, which the NCC Act covers,” mentioned Ayoola Oke, a former Particular Adviser to the previous Govt Vice-Chairman of NCC, Ernest Ndukwe.
Globacom’s management void following Farroukh’s departure will increase questions concerning the firm’s capability to navigate its ongoing inside challenges and regain its aggressive edge. With out vital structural adjustments, it’s unclear how Globacom can deal with the organizational weaknesses that led to Farroukh’s exit.