Ahmad Farroukh’s sudden resignation as CEO of Globacom after just one month in office has left the Nigerian telecom giant at a critical crossroads. This unexpected move has sparked conversations about the challenges within the company and the broader implications for its future. Let’s dive into the reasons behind his departure and what it means for the organization.
A Promising Start Cut Short
In October 2024, Globacom announced Ahmad Farroukh as its new CEO. With over two decades of telecom experience at leading companies like MTN and Airtel, his appointment signaled hope for a fresh approach to Globacom’s operations. Industry watchers anticipated transformative leadership from someone with a proven track record of navigating complex markets. However, just one month later, Farroukh resigned, leaving insiders and observers puzzled.
The Challenges That Drove Farroukh Away
While no official statement has been released by Globacom, multiple sources have pointed to significant organizational challenges as the main reason for his departure. Here are the key factors:
1. A Centralized Leadership Model
Globacom has long been synonymous with its founder, Mike Adenuga, whose hands-on approach to decision-making has been both a strength and a source of contention. While this leadership style helped the company grow in its early years, it has reportedly created hurdles for new executives. Farroukh, accustomed to structured and decentralized environments, likely found it difficult to implement his strategies in a setting where most decisions are tightly controlled by the founder.
2. Regulatory and Operational Pressure
In late 2024, a sector-wide audit by the Nigerian Communications Commission (NCC) revealed significant compliance issues within Globacom. Over 40 million subscribers were improperly registered, violating Nigeria’s National Identification Number (NIN) policy. This led to a sharp decline in Globacom’s subscriber base, with its market share plummeting to 12%. Farroukh inherited these challenges, but insiders suggest that the existing systems within the company made it nearly impossible to tackle such issues effectively in a short timeframe.
3. Cybersecurity Failures
Globacom’s reputation has also been tarnished by cybersecurity lapses. A 2023 data breach exposed millions of customers’ personal information, shaking customer trust. Farroukh’s resignation may partially stem from frustration with the company’s inadequate infrastructure and resistance to swift changes needed to address such vulnerabilities.
Industry Reactions and Broader Concerns
Farroukh’s abrupt exit has raised questions about corporate governance and stability at Globacom. Ayoola Oke, a former adviser to the NCC, called the situation troubling. “When a CEO resigns after just one month, it’s a red flag. The NCC needs to investigate this, particularly regarding Globacom’s governance and operational transparency,” he remarked.
A former Globacom executive suggested that the overwhelming combination of regulatory pressures, subscriber losses, and internal bottlenecks left Farroukh unable to implement meaningful changes. “He walked into a perfect storm,” the source noted.
What’s Next for Globacom?
Globacom is at a critical juncture. With its market share declining and its reputation under threat, the company must take decisive action to address the systemic issues highlighted by Farroukh’s resignation. Here are some steps Globacom needs to consider:
1. Structural Reforms
To attract and retain top-tier leadership, Globacom must modernize its organizational structure. This includes delegating authority to senior executives and reducing reliance on centralized decision-making.
2. Enhanced Regulatory Compliance
Addressing the NCC’s findings should be a top priority. Implementing robust subscriber registration processes and ensuring adherence to national policies will be essential to regaining regulatory and public trust.
3. Investing in Cybersecurity
In today’s digital age, robust cybersecurity measures are non-negotiable. Globacom must invest in state-of-the-art security systems to prevent further data breaches and restore customer confidence.
4. Transparent Leadership Recruitment
The search for a new CEO must prioritize candidates with experience in navigating challenging environments. More importantly, the company must create an environment where the new leader can thrive.
Conclusion
Ahmad Farroukh’s resignation underscores deeper issues within Globacom that require urgent attention. While his departure is a setback, it also presents an opportunity for the company to reassess its operations and embrace necessary changes. For Globacom to reclaim its position as a leader in the telecom sector, it must evolve—both structurally and culturally—to meet the demands of a highly competitive and dynamic industry.