Ahmad Farroukh, the man who stepped into the top role at Nigerian telecom giant Globacom with much fanfare in October 2024, made a surprisingly quick exit after just one month. Rumors are swirling about what led to his sudden departure, but one thing is clear: there were governance challenges that played a significant role in this unexpected development.
“A CEO leaving in one month is unprecedented in the industry.”
Industry insiders have hinted at underlying issues within Globacom’s organizational framework that may have been responsible for Farroukh’s abrupt resignation. While official statements from the company are yet to be released, whispers suggest that structural problems and decision-making processes could have contributed to this executive shake-up.
Uncovering Governance Challenges
Farroukh’s brief stint at the helm has shed light on some of the internal struggles within Globacom. The company has long been criticized for its centralized decision-making approach, with founder Mike Adenuga being a key figure in most strategic moves. This close involvement of Adenuga across various business sectors like oil and gas, financial services, and real estate might have posed hurdles for Farroukh, especially coming from more structured corporate backgrounds such as MTN and Airtel.
Regulatory Headwinds and Market Turbulence
Adding fuel to the fire is the increased regulatory scrutiny faced by Globacom. Recent audits revealed compliance issues related to subscriber registrations, leading to a loss of market share and raising concerns about data security breaches. These challenges likely created an atmosphere where Farroukh found it difficult to implement his vision swiftly enough to address these pressing issues.
Expert Insights:
In light of these developments, Ayoola Oke, a former Special Adviser at NCC, emphasized how crucial corporate governance is in such situations. The void left by Farroukh raises questions about how Globacom will navigate its current obstacles without substantial changes internally.
As Globacom navigates this leadership transition and tries to find its footing post-Farroukh era amidst ongoing operational hurdles and regulatory pressures, only time will tell if the company can regain its competitive edge.
