Globacom, one of Nigeria’s leading telecom companies, recently appointed Ahmad Farroukh as CEO in October 2024. However, his tenure was unexpectedly short, with reports suggesting he stepped down after just one month. While the company has not officially addressed his resignation, insider reports hint at challenges tied to Globacom’s organisational structure.
Leadership Challenges
Farroukh, a seasoned telecom executive with experience at Smile Communications and MTN, reportedly struggled to adapt to Globacom’s centralised management style. Founder Mike Adenuga’s hands-on approach to operations and decision-making seems to have clashed with Farroukh’s leadership preferences, shaped by his background in structured corporate environments.
This leadership shakeup highlights a recurring challenge for the company, where a rigid structure may deter executives accustomed to more autonomous roles.
Regulatory and Market Setbacks
Globacom’s leadership challenges come amidst broader issues. The company recently faced significant regulatory penalties for failing to register over 40 million subscribers without valid National Identification Numbers (NINs). The resulting fine from the Nigerian Communications Commission (NCC) led to a dramatic drop in market share—down to 12%, marking a 60% decline. These setbacks have raised concerns about its ability to compete with industry leaders like MTN and Airtel.
Industry Trends in Leadership
Farroukh’s resignation echoes a wider trend in Africa’s telecom industry, where leadership changes reflect shifting strategic priorities. For instance, MTN recently announced new leadership appointments as part of its “Ambition 2025” strategy, positioning executives to adapt to evolving market demands. This trend underscores the increasing need for alignment between leadership and long-term organisational goals in the competitive telecom space.
A Path Forward for Globacom
To regain stability, Globacom must address its internal challenges. Key priorities include overhauling governance structures to attract top talent and appointing a CEO capable of navigating Nigeria’s fiercely competitive telecom market. Resolving regulatory compliance issues and rebuilding customer trust will also be crucial for reclaiming market share.
As Africa’s telecom sector evolves, companies like Globacom face mounting pressure to strike a balance between leadership adaptability and operational stability. How Globacom navigates this period of transition will set the tone for its future in Nigeria and beyond.